Amid all the ongoing market turmoil, Coventry Building Society has today gone sub-4% on a 2-year fixed rate (at 65% LTV with a £999 fee).
The lender is reducing all new and existing residential fixed rates by up to 25 bps (Excl. Offset) and has reduced all Interest–only fixed rates (Excl. IO Offset).
It has also reduced its buy-to-let fixed rates by up to 0.2%. Newspage asked brokers for their views, below.
Emma Jones, Managing Director at Whenthebanksaysno.co.uk said, “Go go go! This is a fantastic rate from Coventry today. Many brokers will be queuing up at 8pm to take advantage of that rate I’m sure. It’s exciting to see more drops below the 4% mark so we can start to close the gap on cost of living pains.”
Hannah Bashford, Director at Model Financial Solutions added, “Hats off to the Coventry. Someone had to go first and they have paved the way for some aggressive cuts. This is fantastic news for borrowers. It’s game on in the mortgage world.”
Michelle Lawson, Director at Lawson Financial said, “And so it begins. Competitive Coventry have declared their hand with a fantastic rate not seen for a while. Tariff wars may be playing out globally but UK borrowers look like they will finally start getting some much needed relief.”
David Stirling, Director at Mint Mortgages & Protection added, “Hopefully this marks the start of a wave of mortgage rate cuts from major lenders. Amid global economic uncertainty driven by Trump’s tariffs and the ongoing decline in swap rates between banks, Coventry is unlikely to be the last lender to offer attractive rates to the right customers this week.”
Stephen Perkins, Managing Director at Yellow Brick Mortgages said, “Lower fixed mortgage rates are incoming. Coventry follow TSB and other lenders in finally passing on the recent swap rate reductions to borrowers, which should now apply market pressure to the big six lenders to follow suit, causing rates to fall like dominoes.”
Ben Perks, Managing Director at Orchard Financial Advisers added, “Sub 4% on 2-year money is a huge milestone for interest rates. Coventry are first past the post and several lenders will be hot on their tail this week. It’s been a long wait, but the 2025 rate war could finally be here. This could be a flash in the pan moment though with all the Trump Tariff turmoil, so borrowers and brokers need to be ready to pounce on these rates.”
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