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Coventry for Intermediaries closes BBR tracker rates

ended 13. December 2022

This morning, Coventry for Intermediaries announced that, from 8pm Wednesday, it is closing its BBR tracker rates for:

Owner-Occupied 
(new business, porting, further advances and product transfers)

  • Closing all BBR Tracker rates

Buy to Let 
(new business, porting, further advances and product transfers)

  • Closing all BTL & Portfolio Landlord BBR Tracker rates from 8pm Wednesday night. See screengrab. 

Free PR platform, Newspage, sought the views of brokers.

6 responses from the Newspage community

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Craig Fish
Director at Lodestone Mortgages
Coventry is one of the more popular lenders in the tracker space, as their products are penalty-free, meaning they offer great flexibility. As tracker mortgages are proving extremely popular at present, I suspect this move is to manage workflow and volume ahead of the base rate announcement on Thursday. No doubt they will be back in due course.
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Justin Moy
Managing Director at EHF Mortgages
I think this is just in readiness of the potential base rate change this week, and that the products will need refreshing accordingly. What we need to check on is the margin over base rate that the replacement products will be, and whether that margin narrows in any way.
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Paul Neal
Mortgages & Equity Release Advisor at First Choice Financial Services
I don't think Coventry will be the first or last lender to do this. As fixed rates have rocketed, we are finding more and more clients opting for variable and discounted rates. Even with the looming Bank of England rate increase, they are still a much more attractive option than a fixed rate.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
I'd be careful of reading too much into this. With an impending Bank of England meeting it's probably pretty sensible to pause offing a product linked to whatever they decide to do with base rate until after the decision. Don't be surprised to see it re-launched and re-priced accordingly.
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Gary Boakes
Director at Verve Financial
A nice reminder of the impending base rate rise this week, Coventry like every lender taking the opportunity to re price and re launch products. Coventry pricing has been top 2-3 over the last week or so, so this could just be a sign that service is starting to struggle.
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Rob Gill
Managing Director at Altura Mortgage Finance
Tracker rates have become increasingly popular in recent weeks. Not only are they significantly cheaper than fixed rates at the currently, they also offer the tantalising prospect that base rate may start to fall next year as inflation recedes and we enter recession. With margins as low as 0.24% above base, a falling base rate could see those who take a tracker now paying a very low rate in 2023-24.