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Coventry raised rates on its owner-occupied mortgage products.
The lender will increase all standard two-, three- and five-year fixed rates for new businesses, including compensation and interest only.
It will also up the stakes for biennial trackers.
Coventry announced that it will close products at 8:00 pm on March 13 and launch new products at 8:00 am on March 14.
Jonathan Stinton, Head of Reseller Operations at Coventry Building Society, comments: “We test our products against market conditions. We, as usual, notified about the changes 48 hours in advance, because we know that brokers appreciate it very much.”
“Our service has not been affected by the popularity of our products and we will continue to monitor the markets to ensure our rates remain attractive to brokers and their clients.”
Commenting on the changes, Graham Cox, self-employed director of mortgage broker SEMH, says: “I think there are two factors at play here. First, swap rates rose steadily throughout February.”
“Secondly, demand for mortgages was low in January, which meant the big lenders struggled to offer a better deal and cut rates accordingly.”
“Other lenders have raised their rates this week and Coventry is following suit. If they left their rates the same, they risked being inundated with applications.”
RNR Mortgage Solutions director and mortgage broker Anil Mistry describes the changes as “unexpected” and that they are “probably in response to higher swap rates.”
“However, it is admirable that the Coventry Building Society generously notifies brokers 48 hours in advance of such changes. This gives brokers enough time to prepare and submit applications and may serve as a best practice for other lenders who may consider accepting them.”
Trinity Finance adviser Amit Patel adds: “Coventry has inevitably raised its rates, following the trend of other lenders who have been raising their rates during the week.”
“Coventry has always given brokers advance notice of rate hikes. They are one of the best lenders in conveying important information to their brokers.”
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