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Coventry latest lender to cut rates: "the reductions just keep coming"

ended 10. July 2024

Coventry are the latest lender to announce rate cuts this morning, reducing fixed rates for existing and new residential borrowers at 65%-85% LTV (excl. offset). Equally, they have announced both cuts and hikes in buy-to-let and portfolio buy-to-let— fixed rates at 75% LTV will be rising, including for existing borrowers, but reductions are incoming at lower LTVs (see screengrab below). Newspage asked brokers for their thoughts, bottom. Some were happy, others far more critical.

10 responses from the Newspage community

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Craig Fish
Director at Lodestone Mortgages
Following on swiftly from Leeds and TMW yesterday, the reductions just keep on coming, which is a clear sign of positivity returning to the market. It's disappointing that Coventry are increasing rates at the higher LTV level for landlords, but thankfully we saw a positive move yesterday from Metro Bank, which announced it is launching into the increasingly popular limited company buy-to-let space.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
While rate cuts are always welcomed, Coventry Building Society’s decision to increase rates for existing buy-to-let customers is both disheartening and a betrayal of customer loyalty. This move sharply contradicts the society's long-standing reputation as the "good guy" in the financial sector. Consumers rightly expect loyalty and reward for their continued patronage, not rate hikes. This rate increase is a glaring affront to the trust and commitment customers have placed in Coventry Building Society. It's time for Coventry to reassess and realign its actions with the values it proudly espouses, helping out hard-hit property investors who’ve been through so much in the past few years.
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Darryl Dhoffer
Founder at The Mortgage Geezer
Coventry Building have joined the rate reduction party. Let's hope other lenders who have been waiting in the wings follow suit.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
This is a bittersweet announcement from the Coventry. Sweet for many borrowers, but bitter for those with buy-to-let loans at 75% LTV, especially existing borrowers.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
The rate reductions machine is going through the gears as more and more lenders follow the trend and look to reduce to remain competitive. We will not have to wait long before this starts a new cycle, with further reductions from those lenders that reduced last week. The sun is starting to shine on borrowers.
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Rohit Kohli
Director at The Mortgage Stop
If you’re being sent to Coventry this week, it’s potentially good news this time as they are reducing rates across residential and buy-to-let products at lower LTV ranges. However if you're an existing buy-to-let customer with them at 75% loan-to-value, you may be forgiven for wandering what you have done wrong as these rates are going up if you are planning on fixing.
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Andrew Montlake
Managing Director at Coreco
Though it's a slightly mixed bag, overall this announcement from the Coventry shows that the rate cut momentum is growing. Many new and existing residential borrowers look set to benefit, though existing landlords at 75% LTV might be a little miffed.
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Ben Perks
Managing Director at Orchard Financial Advisers
Coventry are the latest lender to cull higher rates and once again join the competition. To be fair, they’re always towards the front of the pack when it comes to product rates and consistently show a real eagerness to lend.
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Justin Moy
Managing Director at EHF Mortgages
It's great to see more rate cuts this morning as lenders look to capitalise on better money market prices. As the summer starts to heat up again, so the property market is, too. Perhaps these new deals should come with some suntan lotion too, as they might get too hot to handle.
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Simon Bridgland
Director at Charwin Private Clients
With this week's cascading interest rates come a huge sigh of relief from borrowers hanging on tenterhooks, waiting very patiently for the next base rate cut. They need patience as I don’t think it’ll happen just yet.