The lender is now offering a three-year fix of 5.89 per cent at 75 per cent loan to value (LTV) without a product fee.
And a 5.99 per cent three-year fix at 85 per cent LTV without a product fee.
Jonathan Stinton, head of intermediary relationships at Coventry for Intermediaries (pictured), said: “Three-year fixes are an underserved part of the market. Mortgage brokers and borrowers have been telling us it’s what they want, so we’ve added this to our range to improve the choices available.
“Many borrowers like the certainty of fixed mortgage rates but the typical two or five-year terms might not appeal to everyone.
“Some borrowers may be worried about whether two years will be long enough to outlast market volatility, while others may think five years is not right either. In today’s environment a three-year fixed rate could hit the sweet spot in between.”
Tracker launches
At the same time, Coventry is also now offering a 3.20 per cent two-year flex tracker, set at bank base rate (BBR) + 0.95 per cent, at 65 per cent LTV. There is a £999 product fee and no early repayment charges (ERC).
And a 3.30 per cent two-year tracker set at BBR + 1.05 per cent at 75 per cent LTV. Again there is a £999 product fee and no ERCs.
Stinton said: “Fixed rates don’t always suit every borrower and many people may be considering dipping their toes into variable rates, possibly for the first time in a while. We’ve launched trackers with no ERCs so they have options if the bank base rate rises too quickly for their liking.
“There’s no one-size-fits-all approach and so we’re trying to create a broad range of choice that helps meet a variety of mortgage needs. As part of this, we’ve also reduced rates at 85 per cent to 95 per cent LTV which will increase the options available for first time buyers in particular.”
