Coventry has increased rates on its owner-occupied mortgage products.
The lender will increase all standard two-, three- and five-year new business fixed rates including offset and interest only.
It will also up rates across two-year trackers.
Coventry announced that it will be closing products at 8pm on 13 March and launching the new products at 8am on 14 March.
Coventry Building Society head of intermediary relationships Jonathan Stinton comments: “We’re recalibrating our products in line with market conditions. We’ve given our usual 48 hours’ notice ahead of the changes because we know this is something brokers really appreciate.”
“Our service hasn’t been impacted by the popularity of our products, and we will keep monitoring the markets to make sure our rates remain attractive to brokers and their clients.”
Commenting on the changes, self employed mortgage broker SEMH director Graham Cox says: “There are two factors at play here I think. The first is that swap rates rose steadily throughout February.”
“The second is mortgage demand was low in January, which meant mainstream lenders were falling over themselves to offer the best deal, and cut rates accordingly.”
“Other lenders have increased their rates this week, and Coventry is following suit. If they’d left their rates where they were, they’d risk being swamped by applications.”
RNR Mortgage Solutions director and mortgage broker Anil Mistry describes the changes as “unexpected” and that they are “likely in response to heightened swap rates”.
“Nonetheless, it is admirable that Coventry Building Society provides brokers with a generous 48-hour advance notice before implementing such changes. This gives brokers ample time to prepare and submit applications, and may serve as a best practice for other lenders to consider adopting.”
Trinity Finance adviser Amit Patel adds: “It was inevitable that Coventry has increased their rates following the trend of other lenders who increased their rates throughout the week.”
“Coventry has always given brokers ample notice when rates are going to increase. They are one of the better lenders in communicating important information to their brokers.”
