An industry expert said that the move will shake up the market further, saying: “If Godiva takes its rates even lower, it will really upset some lenders.”
A spokeswoman for Godiva confirmed that it intended to cut its interest rates as part of its product rotation.
However, she would not be drawn on how far interest rates would be reduced.
Just last week, Godiva launched a range of competitive deals, including a three-year fixed rate at 4.99% up to 65% LTV, with no early repayment penalties and fees of just £250.
In addition, Coventry Intermediaries has reduced rates on its two- and five-year fixed rate residential mortgages by up to 0.20%. Two-year fixed deals start from 3.28%, with five-year fixed rates from 4.65% with no arrangement fee.
Commenting on the residential rate cuts, Colin Franklin, managing director at Godiva Mortgages, said: “Here at Coventry Intermediaries, brokers can find real value for money. We are confident that our new fixed mortgages will be very popular.”
