It is pulling selected fixed rate products from its owner-occupied and BTL ranges
Coventry for intermediaries announced on Tuesday that it is closing selected products from 8pm on May 31.
From its owner-occupied range, the lender said it is pulling all its two-, three-, and five-year fixed new business rates with £999 fee, excluding offset, interest-only, and offset interest only. Also to be closed are all two-, three-, and five-year fixed new business rates at 65% and 80% loan-to-value (LTV), as well as two- and five-year fixed new business offset rates at 65% LTV.
Within the intermediary-only lender’s buy-to-let range, set to be closed are all two- and five-year fixed BTL and portfolio BTL new business rates with a £1,999 fee, and all two- and five-year fixed BTL and portfolio BTL new business rates at 50% LTV.
Justin Moy, managing director at EHF Mortgages, said the move by Coventry was not unexpected as the lender did not announce any changes last week.
“This will be a catch-up move to maintain their position in the pack,” Moy added. “What is good to see is the existing client range, for product transfers, has not been affected, so that is also a good sign of loyalty from the lender.”
Several lenders announced the withdrawal of selected products last week amid expectations that the Bank of England would raise interest rates further as inflation, though dropping below double digits, remained way too far from the government’s target of 2%.
“All the major lenders are being forced to reprice their products due to the fallout of last week’s worse-than-expected inflation figures,” Graham Cox, founder of SelfEmployedMortgageHub.com, said.
“Markets took fright, swap rates soared, and UK gilt yields rose to become even more expensive than Italian debt. It was like Liz Truss all over again. Swap rates are now edging down slightly but remain very high. Not good news for a government swimming in debt.”
Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management, believe that Coventry won’t be the last lender to make such an announcement this week.
“There are still a few lenders that haven’t repriced since last week’s inflation data and the rise in SWAP rates,” she pointed out. “On a positive note, SWAP rates have started reducing, but this may not be enough to pacify the market in the immediate future.
“As always, getting the right advice now is imperative for anyone considering obtaining a mortgage shortly.”
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