Its 65% loan-to-value (LTV) fixed-rate deal now starts at £1.99%, Coventry’s lowest ever rate for a buy-to-let mortgage, down from 2.39%. A 75% LTV mortgage starts at 2.85%, reduced from 3.39%. Both products come with Early Repayment Charges (ERCs), starting at 2% and 5%, respectively.
Coventry has also reduced rates for its 75% LTV Flexx for Term deal, to 2.95% from 3.49%. It carries no ERC and allows unlimited overpayments. All of the products carry a £1,999 arrangement fee.
George Osborne said in October that the Bank of England’s Financial Policy Committee (FPC) will be granted powers to regulate the buy-to-let market ‘as soon as possible’, after the FPC repeated concerns that a boom in buy to let during an upswing in the financial market could put further pressure on house prices.
In a recent survey of 1,200 buy-to-let landlords, 50% of respondents said they were currently considering selling, blaming the government’s reduction of buy-to-let tax relief to the 20% basic rate as a ‘major factor’.