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Coventry follows HSBC and Barclays and cuts rates

ended 26. June 2024

They're falling like dominoes this week. Coventry are the latest lender to announce rate cuts (see screengrab) following HSBC yesterday and Barclays on Monday. The Newspage news agency asked brokers for their thoughts, which can be found below.

16 responses from the Newspage community

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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
They're falling like dominoes now. Each day this week, major lenders have announced rate cuts, which is a win for borrowers. Last night's England game may have been flat but the mortgage market is full of positive energy and momentum. Things are suddenly looking considerably brighter for the property market as we enter the second half of the year. Enquiries are up sharply this week, which suggests the improved weather may also have lifted spirits and confidence.
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Bob Singh
Founder at Chess Mortgages
The mortgage market has been kicked back into life by lenders who are now firmly expecting possibly two rate cuts by the year end. The Federal Reserve is also pricing in similar cuts. Coventry joined the bandwagon with HSBC and Barclays earlier this week and more will follow. This will be encouraging news for those looking to take a mortgage in the short term or renew their super-low rates this and next year. Inflation figures will be key to a sustained reduction in rates but let’s keep an eye on 5 July when the election results are announced. No betting please.
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Ken James
Director at Contractor Mortgage Services
Coventry have put their best foot forward and shown that they want to play with the big boys. With cries for rate cuts starting to become louder and louder, it is good to see lenders demonstrate that they are listening. This will bring other lenders forward as they start to lose business to the ones who have been brave to step forward first. Question is, who is next? More lenders piling in now feels inevitable as they seek to retain and acquire market share.
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Michelle Lawson
Director at Lawson Financial
Another summer sizzler announcement from consistent Coventry. The sun appears to be bringing the good news. Let's hope it continues longer than the current British heatwave. The only negative here is that the rate changes come after the cut off date for existing borrower transfers for the beginning of July to benefit.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
Today has started far better than England’s dismal performance last night with another lender reducing rates. If England could score goals at the rate lenders are introducing cuts it would be coming home. The warm weather this week has seen the mortgage market shine and borrowers are emerging in their droves.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
More exciting news for mortgage borrowers. Coventry joins HSBC and Barclays in slashing rates, signalling a possible base rate cut soon. With lenders likely entering a rate competition reminiscent of January, this could be the spark needed to ignite the property market. The mortgage market has gone from slow to supersonic in a matter of a week.
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Craig Fish
Director at Lodestone Mortgages
Temperatures are rising and mortgage rates are falling. That's a perfect combo and it's currently shaping up to be the perfect UK summer. If SWAP rates continue to fall then expect more of the big high street lenders to reduce rates further. This is good news all round, and it's likely to keep coming. England may be playing shambolically, but in the mortgage market it's game on.
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Justin Moy
Managing Director at EHF Mortgages
This is an excellent move by Coventry BS, with rate cuts for new and existing clients allowing everyone to feel the benefit of recent Swap rate improvements. With the hot weather encouraging a more positive outlook, these rate cuts are just the tonic frazzled borrowers need.
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Simon Bridgland
Director at Charwin Private Clients
Coventry show their form as one of the cool kids by joining NatWest, Barclays and HSBC. Reducing their rates for both new and existing borrowers, not only on residential mortgages but also buy-to-let, helping reduce the pressure on the UK's under pressure private landlords.
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Rohit Kohli
Director at The Mortgage Stop
More good news for borrowers as another major lender cuts rates. With the likes of Barclays and HSBC already making cuts it’s a good start to the summer for those whose deals are coming to an end and hopefully will help help kickstart the market in the coming weeks.
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Harps Garcha
Director at Brooklyns Financial
Summer's finally kicking off with a bang. Another lender this week has slashed their rates on both residential and buy-to-let mortgages. It's a welcome relief for borrowers who've been sweating it out with high rates lately. The mortgage market's heating up, and it's way more exciting than England's performance last night. Over the past couple of weeks, there's been a noticeable buzz on the ground. The mortgage market is getting busy, and the activity is definitely picking up. Looking ahead, the second half of 2024 is shaping up to be a lot more promising.
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David Stirling
Independent Financial Advisor at Mint Wealth
We've not exactly hit the bargain basement for borrowers just yet but the competition for new business from the banks has definitely heated up this week. Could this pressure to drop rates create a tidal wave with the other lenders? We will have to wait and see. For some the Bank of England decision in August is very hotly anticipated and could hopefully lead to an incredibly busy autumn.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Coventry appear to have received the memo that is working its way around lenders telling them it’s time to cut. Some other major lenders need to check their post or miss out.
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Andrew Montlake
Managing Director at Coreco
The tail end of June is starting to feel like January. Lenders are proving increasingly aggressive and conditions are improving. The feel-good factor is back. After a fantastic start to the year, we've had a number of turbulent months, but with swap rates improving ahead of a potential base rate cut, things are definitely picking up.
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Dariusz Karpowicz
Director at Albion Financial Advice
Coventry is the latest lender to announce rate cuts, following HSBC yesterday and Barclays on Monday. While these minor decreases are certainly a step in the right direction, the average rate for a 2- or 5-year fix remains high. It's good to see rates moving down, but let's not get carried away. There are still too many unknowns on the horizon. The upcoming election, fluctuating house prices and geopolitical uncertainties all add layers of complexity to the market. So, while it's a positive sign that lenders are starting to cut rates, we shouldn't expect large decreases in the near future. Borrowers should remain cautious and keep an eye on these developments. It's a hopeful trend, but we're not out of the woods yet. Let's stay tuned and see if this trend continues or if it's just a temporary blip.
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Ben Perks
Managing Director at Orchard Financial Advisers
While Southgate’s men look lacklustre and uncreative, the lenders are up and at it this week. Coventry cuts are providing a much needed smile this morning after a miserable evening for England.