Coventry Building Society says it will cut its entire range of two- and five-year residential and landlord fixed-rate loans on Friday (28 July).
The mutual says it will close its current range at 8pm Thursday 27 July, in line with its policy of giving brokers two days’ notice of product closures. The new deals become available at 8am on Friday.
The move follows HSBC and Accord who have also cut rates this week, as lenders bet the Bank of England is coming to the end of its series of base rate rises.
The central bank rate is currently 5%, after rising 13 times in a row since December 2021.
The move by lenders comes after inflation fell to a sixteen-month low of 7.9% in the year to June last week, according to the Office for National Statistics, from 8.7% in the year to May.
Investors now forecast a peak base rate of 5.75%, compared to predictions earlier in the week of the rate hitting 6.5% next March.
The changes at Coventry Building Society include:
Residential
(new business, porting, product transfer)
- Cutting all two- and five-year fixed new business rates
- Increasing Flexx fixed existing customer product transfer-only rates
Buy to Let
(new business, porting, product transfer)
- Reducing all two- and five-year fixed buy-to-let and portfolio landlord BTL rates
- Increasing BTL Flexx fixed existing customer product transfer-only rates
Rebus Financial Services co-founder Lee Gathercole says: “It’s great to see lenders like Coventry following HSBC and Accord by dropping interest rates, and let’s hope we see more competitive pricing in the near future.
“It’s early days, but with inflation starting to edge down I think mortgage holders and first-time buyers can start to gain a little confidence again.”
