The mutual issued a notice to brokers yesterday stating that from 8pm today the products would be removed from the market.
This includes three residential trackers, one buy-to-let and one portfolio landlord tracker. The removal also covers new business, porting, further advances and product transfers.
Ian Biggs, head of product performance at Coventry Building Society, said: “We’re temporarily pausing tracker rates to recalibrate our products in preparation for the Bank of England meeting later this week.
“We are committed to our pledge of giving brokers two days’ notice before any rate amendments as we know this is something brokers really value. Our service hasn’t been impacted by the popularity of our products, and we anticipate new products will return to the range soon.”
Brokers have reported increased interest in tracker and discounted tracker products as they often have lower rates than their fixed rate counterparts.
They also said that some products were flexible with low or no early repayment charges, so could be good for certain customers.
Craig Fish, founder and director at Lodestone Mortgages and Protection, said: “Coventry is one of the more popular lenders in the tracker space, as its products are penalty-free, meaning they offer great flexibility.
“As tracker mortgages are proving extremely popular at present, I suspect this move is to manage workflow and volume ahead of the base rate announcement on Thursday. No doubt they will be back in due course.”
Paul Neal, mortgage and equity release specialist at Missing Element Mortgage Services, said: “I don’t think Coventry will be the first or last lender to do this. As fixed rates have rocketed, we are finding more and more clients opting for variable and discounted rates.
“Even with the looming Bank of England rate increase, they are still a much more attractive option than a fixed rate.”
