The mutual has brought out a five-year residential purchase fixed rate at 65% loan to value (LTV) with a £999 fee priced at 3.9%.

The lender has also lowered residential rates by up to 0.52% and BTL rates by up to 0.25%.

An example includes its five-year fixed rate at 65% LTV with no fee, available for BTL remortgages, priced at 4.53%. It has the option of £350 cashback or the use of the remortgage transfer service.

Jonathan Stinton (pictured), head of intermediary relationships at Coventry Building Society, said: “Seeing sub-4% rates back on the table is a great sign for the market and could lead to more activity in the latter part of the year.

“Last week’s Bank of England decision was the welcome news borrowers had been waiting for, and the sweep of rate reductions [that] has happened since should hopefully generate confidence among those looking to secure a new mortgage deal in the coming months.”

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Several lenders have introduced sub-4% deals this week, including Halifax, HSBC and The Mortgage Works, following the base rate decision last week.

Brokers told this publication that the base rate cut has boosted customer enquiries, especially from first-time buyers, adding that if there are further cuts later this year, that could also have a positive effect on the market.

Coventry Building Society last lowered mortgage rates in July, with residential and BTL rates reduced by up to 0.18%.