Other lenders, including Nationwide, continue to raise rates
Coventry Building Society and Nottingham Building Society have each set out mortgage rate reductions, diverging from a market in which many lenders are still putting prices up.
Coventry said it will cut some product rates from Thursday, having briefed brokers that a range of rates will be reduced.
The mutual lender temporarily removed all new-customer products from sale just over a week ago. Products returned the following Friday, with price increases of up to 0.75%.
Under the latest changes, Coventry said all two- and five-year fixed rates for first-time buyers will be lowered. It also plans to reduce all limited company buy-to-let fixed rates for new borrowers.
Meanwhile, Nottingham Building Society said it will reduce rates for new residential customers by up to 0.21%.
It will also cut limited company buy-to-let rates by up to 20 basis points for both new business and product transfers.
In addition, the lender is introducing new products for standard buy-to-let borrowers.
The announcements come as Moneyfacts figures show the average two-year fixed rate is 100 basis points higher than before the outbreak of war, now at 5.83%.
“It is good to see some of the lenders lowering their rates, but most of the providers are still pushing up the cost of borrowing,” commented Aaron Strutt, product director at mortgage broker Trinity Financial.
“More of the banks and building societies are offering fixed rates between 4.75% and 5% now which isn’t cheap. Tracker rates are also much more popular, but they are starting to get more expensive as well.”
Indeed, several lenders have signalled further increases. Nationwide is raising selected fixed and tracker rates by up to 0.25% from tomorrow. Halifax and BM Solutions have also scheduled rises of up to 0.15% to take effect tomorrow, while Accord is increasing buy-to-let rates by up to 0.20%.
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