The changes will go live on Friday. For residential borrowers, this will include reductions across two-year fixed new business rates except for the fee-free remortgage at 65 per cent loan to value (LTV) and a fee-free purchase deal at 80 per cent LTV.
Its three-year fixed new business rates will also be cut, excluding a remortgage at 65 per cent LTV with a £999 fee, purchase options at 75 per cent LTV, and a fee-free remortgage at 80 per cent LTV.
All five-year fixed rates for new business will be lowered, as well as all existing borrower pricing excluding the three-year fix at 80 per cent LTV with a £999 fee and the five-year fixed green further advance product at 75 per cent LTV.
For buy-to-let new business, two and five-year fixes will be reduced, except for the 65 per cent LTV remortgage options on both terms with no fee.
The mutual will reduce two-year fixed deals for existing customers, except for rates at 50 per cent LTV and the 65 per cent LTV option with a £1,999 fee.
Pricing on its five-year fixes for existing buy-to-let borrowers will fall, except for deals at 50 per cent LTV and the 65 per cent LTV rate with no fee.
Good news for borrowers
Brokers said the reductions from Coventry Building Society could restore confidence in the mortgage market.
Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management, said: “These reductions from Coventry Building Society are great news and show that lenders really are trying to keep the mortgage and property market moving, despite the numerous headwinds.
“Hopefully, this will be a continuing trend for the foreseeable future.”
Nick Mendes, mortgage technical manager at John Charcol, said: “Despite the recent uptick in swap rates, Coventry Building Society has decreased its fixed rates across the board which is great to see.
“While some lenders have repriced upward, Coventry Building Society has taken the opportunity to be slightly more competitive.”
Riz Malik, founder and director at R3 Mortgages, said the mutual joined other lenders that were “eager to inject life into the residential and buy-to-let markets with these welcome rate reductions”.
He added: “They won’t stimulate wholesale activity on their own, but they will certainly add to the downward momentum in pricing we’re currently seeing.”
Accord Mortgages ups PT rates
Accord Mortgages has increased the rates on its buy-to-let product transfer mortgages.
The lender said it appreciated the market was “volatile” so aimed to give brokers at least 24 hours’ notice of any changes.
The rate changes will apply from Thursday.
Its two-year product transfer rates will rise by up to 0.07 per cent, three-year rates will increase by 0.04 per cent, and five-year rates will go up by 0.12 per cent.
The existing range will be withdrawn by 8pm today and buy-to-let product transfers which are already in progress cannot be cancelled or changed.
A spokesperson for Yorkshire Building Society said: “We’ll always do everything we can to support our brokers and their clients and only react to changing market conditions when necessary. The latest changes have been made in order to balance broker service, customer needs and our own financial position.
“We appreciate the market is volatile at present, and whilst not always possible, we will always try to give brokers at least 24 hours’ notice of any upcoming changes.”
