Copy article

Coventry rate cuts "further evidence that lenders have moved from shut-up-shop mode to full-blown price war mode"

Journalist: Riz Malik

ended 13. September 2023

Coventry Building Society today announced it will be launching new products on Friday 15 September. Here’s what’s changing:

  • Residential (new business, porting, further advances, and product transfers)
    Reducing all Fixed new business and existing customer only rates at 50% - 80% LTV (incl. Offset, Interest-only, Offset Interest-only)
    Reducing all Tracker rates at 65% and 75% LTV 

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

  • Reducing all Fixed BTL and Portfolio BTL new business rates
    Reducing all BTL and Portfolio BTL Tracker rates
    Reducing all 2 Year Fixed BTL and Portfolio BTL existing customer only rates excluding 50% and 65% LTV rates with no fee
    Reducing all 5 Year Fixed BTL and Portfolio BTL existing customer only rates

Brokers responded positively to the news. Gary Bush, financial adviser at the Potters Bar-based MortgageShop.com, said: “These latest mortgage rate cuts are further evidence that lenders have moved from shut-up-shop mode to full-blown price war mode. This is great news for all mortgage applicants."

Graham Cox, founder of the Bristol-based broker, Self Employed Mortgage Hub, said the move was due to both falling SWAP rates and low business levels: "There are two reasons for the recent spate of mortgage rate cuts, with the Coventry the latest lender to announce. First, UK SWAP rates continue to steadily edge down, as it becomes clearer by the day we're at, or very close to, the peak in interest rates. Second, mortgage transaction levels are about a third down on last year, and lenders are fighting over the scraps.”

Cox's views were mirrored by Jamie Alexander, director at Southampton-based Alexander Southwell Mortgage Services: “UK SWAP rates are consistently decreasing, indicating that we are either currently at, or extremely close to, the highest point in interest rates. Secondly, mortgage activity has dropped compared to the previous year, leading to intense competition among lenders for the remaining business.”

Publishers: if you use any, or all, of this content for publication, please credit Newspage.

5 responses from the Newspage community

Copy all

Star Quote
Copy

Darryl Dhoffer
Founder at The Mortgage Geezer
These are desperate measures from lenders to fill up their loan books but great for the borrowers, if you are lucky enough to have anyone ready and waiting to take advantage of the rate reductions. Buyers and remortgagers ultimately need consistency in rates and house prices before they come back to the market.
Star Quote
Copy

Rhys Schofield
Brand Director at Peak Mortgages and Protection
The inescapable fact is that to make money, lenders have to lend money and it's clear that they are competing hard to lend it. The net winners are going to be mortgage clients with lower monthly payments.
Copy

Gary Bush
Financial Adviser at MortgageShop.com
These latest mortgage rate cuts are further evidence that lenders have moved from shut-up-shop mode to full-blown price war mode. This is great news for all mortgage applicants.
Copy

Graham Cox
Director at Bridging Hub
There are two reasons for the recent spate of mortgage rate cuts, with the Coventry the latest lender to announce. First, UK swap rates continue to steadily edge down, as it becomes clearer by the day we're at, or very close to, the peak in interest rates. Second, mortgage transaction levels are about a third down on last year, and lenders are fighting over the scraps.
Copy

Jamie Alexander
Mortgage Director at Alexander Southwell Mortgage Services
This news is very welcome as we have many clients who have products ending with Coventry and are unable to change lenders due to their limited company director status. The current price war is only good news for borrowers. SWAP rates are consistently decreasing, indicating that we are either currently at, or extremely close to, the highest point in interest rates. Secondly, mortgage activity has dropped compared to the previous year, leading to intense competition among lenders for the remaining business.