"Lenders really are trying to keep the mortgage and property market moving, despite the numerous headwinds."
Coventry Building Society has announced a series of mortgage rate cuts which go live on Friday 1st September.
In its residential range, including new business, porting, further advances and product transfers, all five-year fixed rates will reduce.
All two-year fixes are reducing, excluding a 65% LTV remortgage rate and 80% LTV purchase rate with no fee.
All three-year fixed rates are also being lowered, apart from a 65% LTV remortgage rate with a £999 fee, 75% LTV purchase rates, and an 80% LTV fee-free remortgage product.
All existing customer rates will see reductions apart from a three-year fixed rate at 80% LTV and a five-year fixed rate green further advance product at 75% LTV.
In the Society's buy-to-let range, all two and five-year fixes will reduce, aside from selected fee-free rates at 65% LTV.
Portfolio buy-to-let rates will also see reductions aside from selected 50% and 65% LTV rates.
News agency, Newspage, asked brokers their views on the changes.
Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management, said: "These reductions from the Coventry are great news and show that lenders really are trying to keep the mortgage and property market moving, despite the numerous headwinds. Aside from Accord raising its buy-to-let product transfer rates yesterday, there haven't been any rate rise notifications in well over four weeks. Hopefully, this will be a continuing trend for the foreseeable future."
Riz Malik, founder and director at R3 Mortgages, commented: "Coventry joins the other lenders eager to inject life into the residential and buy-to-let markets with these welcome rate reductions. They won’t stimulate wholesale activity on their own but they will certainly add to the downward momentum in pricing we're currently seeing."
Peter Stamford, director and lead adviser at Moor Mortgages, said: "Coventry's rate reductions are a positive sign, indicating lenders' commitment to sustaining the property market. Notably, with few rate hikes and falling UK swap rates, the outlook appears cautiously optimistic. Such steps, while not transformative alone, certainly support the present trend of favourable pricing in both residential and buy-to-let sectors."
Anil Mistry, director and mortgage broker at RNR Mortgage Solutions, added: "It's great to see another lender on the high street joining others in lowering their interest rates. This boosts confidence among both borrowers and brokers, showing that lenders are open for business. With swap rates going down recently, we hope that more banks will follow Coventry Building Society's example."
