Brokers receive 48-hour notice of a rate increase from Coventry BS.
Brokers have been informed by Coventry Building Society that it will close a number of residential and buy-to-let rates tomorrow and return with greater offers the following day.
According to the mutual, items will be closed on Thursday, June 15 at 8 p.m. and reopened on Friday, June 16 at 8 a.m.
All residential and BTL fixed-rate contracts, including offset and interest-only deals, will increase as a result of the changes, and all tracker rates will end.
The lender claims that the action is in keeping with its promise to provide brokers two days’ notice before making changes to a product.
Brokers commended the institution for maintaining its 48-hour commitment in a volatile market where swap rates were rising due to anticipation for a “higher for longer” Bank of England base rate.
According to Jamie Lennox, director of Dimora Mortgages, “With the current state of the market, rate increases are inevitable for the majority of lenders since they all need to maintain a sustainable business model.
“We do, however, have to take our hats off to the decision-makers at Coventry as they are giving 48 hours’ notice of the withdrawal once again, allowing a reasonable amount of time for brokers to secure deals and consumers to consider their options without feeling forced into a corner,” the statement continued.
Graham Cox, the creator of SelfEmployedMortgageHub.com, continues, “Coventry just stated last Friday that they were raising all of their residential fixed-rate products.
“Now, only three working days later, they’ve been compelled to raise them once more because of the UK gilt yields and swap rates’ almost unstoppable daily rise.
“However, Coventry deserves praise for providing a 48-hour warning. If only other lenders would pay attention, brokers’ lives would be so much simpler, and consumers’ rights would be lot more upheld.