Home Property Finance & InvestmentMortgages ‘Not the start to the week Britain’s borrowers were hoping for,’ as Coventry increases fixed rates

‘Not the start to the week Britain’s borrowers were hoping for,’ as Coventry increases fixed rates

by Seamus Doherty Property Reporter
26th Feb 24 12:41 pm

Coventry has just announced it is increasing fixed rates, from tomorrow night. Newspage asked brokers for their views.

Coventry are increasing “all fixed rates” and they will close “all offset rated with no fee” for new borrowers for residential and for existing borrowers there will be “no changes to range.”

For the But to Let and portfolio Buy to Let new borrowers will face an increase on all fixed rates and for existing borrowers there will be no changes to range.

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Darryl Dhoffer, adviser at The Mortgage Expert said, “Coventry Building Society’s decision to hike mortgage rates is another blow to aspiring homeowners, particularly first-time buyers already struggling with rising costs of living.

“This latest increase comes on the heels of previous upward adjustments, painting a concerning picture of an institution seemingly prioritising profit over the dreams of potential property owners.

“While Coventry cites economic factors as justification for their decision, it’s crucial to recognize the cumulative effect of these repeated hikes. Each increase chips away at affordability, pushing the goal of homeownership further out of reach for many.

“This disproportionately impacts young people and those on lower incomes, exacerbating existing inequalities in the housing market.”

Stephen Perkins, managing director at Yellow Bricks Mortgages said, “Coventry announcing rate increases is certainly not the start to the week Britain’s borrowers were hoping for.

“However, at least they give some notice, so current rates can be secured by those ready to do so.

“We may see more volatility in mortgage pricing this week as lenders balance business levels and service.”

Katy Eatenton, mortgages and protection specialist at Lifetime Wealth Management said, “This is not a good start to the week, especially considering Coventry only increased rates last week.

“They are the only lender that gives 48 hours’ notice, so at least brokers have enough time to properly advise clients and package cases compliantly rather than rushing through to get applications submitted within four hour windows.

“However, that aside, it would be good to see some rates decrease this week. All eyes will be on SWAP rates.”

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