"Phenomenal news" as Coventry cuts B2L rates
Coventry has this morning announced further rate cuts, with brokers applauding the buy-to-let rates in particular (see screengrab). Newspage asked brokers for their views, below.
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12 responses from the Newspage communityCopy all
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This is brilliant news for landlords. Until now, all the headline reductions had been focused on the residential market. Sub-4.5% with a competitive arrangement fee represents ‘light at the end of the tunnel’ for the buy-to-let market. All eyes are now on the other lenders in this sector as Coventry have thrown down the gauntlet.
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If you own a buy to let then these new rates could be a breath of fresh air for you. Coventry's second rate cut in a week indicates that there is a burning desire among lenders to get business done and they should be applauded for offering products with both competitive rates and fees and not taking the approach by some other buy-to-let lenders of offering eye-watering fees for lower rates.
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This is Coventry’s second rate reduction in the space of four days and a real statement of intent. It's phenomenal news for buy-to-let investors as these are super low rates with fixed arrangement fees, rather than the % fees we have been seeing on the lower rates being offered. Landlords should be very excited by these cuts.
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Friday morning's rate cuts continue the good news we've had so far in 2024 for borrowers, and it's especially good to see buy-to-let rates reducing. This will give landlords more options at a competitive price, which is desperately needed, and will hopefully help take some of the pressure off the ever-increasing price rises for landlords and, as a result, tenants. Tenants as much as landlords will be the winners as buy-to-let rates come down.
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Excellent pricing from Coventry BS, especially for landlords from a lender that has been a long-time supporter of property investment. These cuts come at a time where SWAP rates are unsettled, just demonstrating the desire from lenders to be competitive, and to drive strong lending performance in 2024.
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This is great news for landlords who have been mostly jealously looking on as residential rates have been falling left, right and centre. Hopefully more buy-to-let rate reductions will now follow from other lenders.
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More positivity and another push in the right direction within a week. Brilliant news and bravo Coventry. Hopefully the bigger banks see the opportunity we have in 2024 and follow suit with further major cuts.
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The rate reduction predator strikes again. Big applause for the buy-to-let reductions, which will be a real support to landlords. However, while new borrowers will rejoice, a bitter truth still exists, as existing borrowers often miss out on the juiciest cuts. Loyalty in my opinion should be rewarded so there is still some way to go yet.
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It's great to finally see some competitive buy-to-let rates that don't cost an arm and leg. Hopefully this will signal to a few other lenders that they need to start providing more competitive products to landlords. Most landlords have found access to the cheapest rates difficult to stomach with the fees being so high, so this product will be a huge relief.
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Further signs of the mortgage market rebounding after a dismal second half of 2023. Coventry dropping their 5-year BTL rate to 4.44% at 65% LTV is ultra-competitive, and the £1999 fee is not exorbitant either, when you consider some lenders are charging 3%-5% of the loan amount.
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It seems all major mortgage lenders in the UK have now caught up with the downward trend of fixed rates. Coventry Building Society are the latest although are more cautious than others to tread into the 3% territory that is grabbing all the headlines at the moment. Our feelings are that this conservative lender doesn't want to suffer, as others have, from being deluged by new applications and murdering their servicing levels by sticking their heads too far above the trench in this relentless rate war.
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Coventry has done the unthinkable and put the high street lenders to shame with their aggressive pricing, which will give landlords having to remortgage a lot of relief. If this doesn't force the complacent big six to re-evaluate their prices I don't know what will, and hopefully, it will unleash a second tsunami of aggressive repricing for the second half of the month. Coventry is the second largest building society in the country and you can see, with moves like this, they are determined to keep that position ahead of the likes of Skipton et al.