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"Go go go!" as Coventry goes sub-4% on 2-year

ended 09. April 2025

Amid all the ongoing market turmoil, Coventry Building Society has today gone sub-4% on a 2-year fixed rate (at 65% LTV with a £999 fee). The lender is reducing all new and existing residential fixed rates by up to 25 bps (Excl. Offset) and has reduced all Interest–only fixed rates (Excl. IO Offset). It has also reduced its buy-to-let fixed rates by up to 0.2%. Newspage asked brokers for their views, below.

13 responses from the Newspage community

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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Lower fixed mortgage rates are incoming. Coventry follow TSB and other lenders in finally passing on the recent swap rate reductions to borrowers, which should now apply market pressure to the big six lenders to follow suit, causing rates to fall like dominoes.
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Michelle Lawson
Director at Lawson Financial
And so it begins. Competitive Coventry have declared their hand with a fantastic rate not seen for a while. Tariff wars may be playing out globally but UK borrowers look like they will finally start getting some much needed relief.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Go go go! This is a fantastic rate from Coventry today. Many brokers will be queuing up at 8pm to take advantage of that rate I’m sure. It's exciting to see more drops below the 4% mark so we can start to close the gap on cost of living pains.
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Hannah Bashford
Director at Model Financial Solutions
Hats off to Coventry. Someone had to go first and they have paved the way for some aggressive cuts. This is fantastic news for borrowers. It's game on in the mortgage world.
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Riz Malik
Independent Financial Adviser at R3 Wealth
We have been saying since last Thursday that lenders could slash fixed rates and here we are thanks to President Trump. Before the end of the week the major high street banks should follow, opening up options to those remortgaging in 2025. Rates starting with a 3 will breathe life back into the purchase market as well. Lenders may also follow with loosening criteria, which could mean even more good news to borrowers battered since 2022.
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Justin Moy
Managing Director at EHF Mortgages
Coventry BS are the first lender to break that sub-4% 2yr deal for some months, as Swaps have continued to fall in light of the Trump Tariff announcements last week. The world-wide uncertainty has lead markets to fall and just could be the best news for mortgage holders for years. Other high street lenders will start to react in a similar fashion, watch this space.
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David Stirling
Independent Financial Adviser at Mint Wealth
Hopefully this marks the start of a wave of mortgage rate cuts from major lenders. Amid global economic uncertainty driven by Trump’s tariffs and the ongoing decline in swap rates between banks, Coventry is unlikely to be the last lender to offer attractive rates to the right customers this week.
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Jack Tutton
Director at SJ Mortgages
This is a strong move by Coventry to go under 4% with the volatility we have in the market. The lending markets have reduced significantly since Trump's tariffs. We haven’t seen any major moves by lenders until now. The markets are still very reactive and it won’t take much for things to change, however the hope will be that this move by Coventry is the start of further reductions to come.
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Craig Fish
Director at Lodestone Mortgages
To see a 2-year fixed rate below 4% is no surprise considering what has happened to swap rates this week, but it’s fantastic news, so let the stampede commence. More lenders will now follow and the property looks set for a hot summer.
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Ben Perks
Managing Director at Orchard Financial Advisers
Sub 4% on 2-year money is a huge milestone for interest rates. Coventry are first past the post and several lenders will be hot on their tail this week. It’s been a long wait, but the 2025 rate war could finally be here.
This could be a flash in the pan moment though with all the Trump Tariff turmoil, so borrowers and brokers need to be ready to pounce on these rates.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
Coventry Building Society going sub-4% on a 2-year fix is a strong signal that lenders are starting to respond to improving swap rates and softening market sentiment. With reductions across residential, interest-only, and buy-to-let products, Coventry is clearly looking to stay ahead of the curve. In a market full of uncertainty, these kinds of moves offer much-needed relief for borrowers, particularly those remortgaging or looking to secure a short-term fix. It’s also a clear sign we could see more mainstream lenders follow suit in the coming weeks if market conditions remain favourable.
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Adam Stiles
Managing Director at Helix Financial Partners
All eyes on Coventry today as they release a sub 4% rate. The first of many I'm sure as the worldwide effect of the Trump tariffs kicks in. The great mortgage rollercoaster continues!
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Sean Horton
Managing Director at Respect Mortgages
Looking at these rate cuts by Coventry, it's clear lenders are reacting to the recent dip in swap rates. Sub-4% is psychologically important for borrowers and suggests competition is heating up nicely.

The reductions could trigger a chain reaction among other lenders who won't want to be left behind. With swaps at their lowest since pre-Truss levels, there's genuine momentum building.

For borrowers sitting on the fence, this might be the nudge they need. But remember, these top rates typically come with chunky fees, so do your sums carefully before being dazzled by the headline rate.