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Coventry BS cuts offset mortgages rates; Dudley BS alters BTL and self-build products

  • 25/06/2021
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Coventry BS cuts offset mortgages rates; Dudley BS alters BTL and self-build products
Coventry for Intermediaries has cut rates on its offset mortgages by up to 0.24 per cent across most loan to values (LTV).


Highlights of the changes include a 24 basis point (bps) reduction to 1.35 per cent on its two-year fixed purchase product at 65 per cent LTV.

The rate for its five-year fixed at 65 per cent LTV has also decreased from 1.79 per cent to 1.55 per cent.

Both products are available for product transfer and remortgage, have a £999 product fee and early repayment charges (ERCs) until 30 September 2023.

Coventry Building Society’s head of intermediary relationships Jonathan Stinton (pictured) said: “Offset is a fantastic way for borrowers to make their savings work harder by saving mortgage interest and either reducing monthly payments, make the mortgage term shorter or pay off the mortgage early.

“For brokers, offset gives them more touch points with their clients. Rather than just checking in towards the end of a client’s fixed rate mortgage, brokers could get in touch on an annual basis to see how their clients are progressing with their savings goals and offer support if needed.”


Dudley Building Society improves BTL and self-build options

Dudley Building Society has launched buy-to-let (BTL) and self-build products to support borrowers who buy a new residence whilst renting out their existing property as well as cater for the increased demand for self-build products.

The products include a two-year fixed BTL product at 70 per cent LTV, which has a rate of 3.69 per cent. It is subject to an early repayment change (ERC) of three per cent for the first two years and loans very between £25,000 and £1m. The product also has a fee of £750.

On the self-build side, there are two products with an LTV of 75 per cent at end value and 80 per cent at land value.

The advance mortgage has a rate which is discounted by 0.75 per cent from the mutual’s self-build standard variable rate of 5.49 per cent, while the arrears option is discounted by one per cent.

The products have a fee of £1,000 and offer loan sizes between £100,000 and £1m.

Dudley Building Society’s commercial director Sam Ward said: “Not only does the new fixed rate BTL product benefit from a lower rate, but it also provides a solution to borrowers who buy a new principal residence while renting out their existing property and have attracted a SDLT surcharge.

“With our new fixed rate product which has an ERC of only two years, customers still have the option of selling before the end of year three to claim back the surcharge.

“On the self-build side, we have increased our maximum loan to £1m as research has shown that there is increasing demand for self-build products with larger loan sizes.”

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