Against the recent trend of climbing mortgage rates, Coventry Building Society has announced a series of cuts across its mortgage range.

While many lenders have been hiking up their rates, Coventry Building Society is taking a different route. The society has declared a reduction in rates for various fixed-rate mortgages, specifically targeting two-, three-, and five-year products with up to 75% loan to value (LTV). This applies to both new purchases and those looking to remortgage, providing options with or without fees.

But that’s not all—Coventry hasn’t forgotten about those interested in more specific mortgage types. They’re also slicing rates on their two- and five-year fixed interest-only and offset mortgages. However, it’s important to note that these changes won’t affect existing residential borrowers with Coventry.

For those eyeing the buy-to-let (BTL) market, there’s good news too. New BTL borrowers will see reductions across all two-year fixed purchase and fee-free remortgage rates, as well as five-year fixed rates, starting from 8 pm on 14 March.

A Welcome Change

Nick Mendes, a mortgage technical manager at John Charcol, commented on the announcement, labeling it as “welcomed news” amidst a backdrop of widespread rate increases from other lenders. However, Mendes also noted that despite these reductions, Coventry Building Society’s rates might not top the “best buy” charts just yet, indicating that while the cuts are significant, they may not revolutionise the market entirely.

The Bigger Picture

This move by Coventry Building Society arrives at a time when the mortgage landscape has been somewhat tumultuous. Recent weeks have seen a flurry of activity from lenders, with many opting to raise their mortgage rates. This week alone, heavyweights like Santander, Co-operative Bank, and Natwest have all announced increases in their mortgage pricing, making Coventry’s decision to cut rates even more surprising.