Coventry increases rates with 48 hours' notice

This morning, Coventry Building Society announced it is increasing rates, but has provided brokers with 48 hours' notice of the changes.

The Society is closing products at 8pm tomorrow, with new products launching on Friday 16th June.

As part of the changes all buy-to-let and residential fixed rates, including offset and interest-only, will increase, with all tracker rates closing.

Yesterday, a new organisation launched to represent mortgage brokers, The Broker Collective's inaugural campaign is the #24hourpledge, calling on all lenders, before discontinuing any mortgage product, to pledge to provide a minimum notice of 24 hours to all affiliated brokers.

Jamie Lennox, director at Dimora Mortgages, said: "With current market conditions, rate increases are unavoidable for most lenders as they all need to maintain a profitable business model. We do, however, have to take our hats off to the decision-makers at Coventry as yet again they are giving 48 hours' notice of the withdrawal, allowing a reasonable time for brokers to secure deals and consumers to consider their options without feeling forced into a corner. We need more lenders to follow in Coventry's footsteps and back the #24hourpledge launched by The Broker Collective, as they can clearly demonstrate they can maintain a profitable business model without the detriment to the customer."

Gary Boakes, director at Verve Financial, commented: "With the market in a state of flux again, it is inevitable that we are going to see lenders increase their rates. What is commendable about Coventry is that they are finding a balance between doing that but giving potential new customers and brokers enough time to secure those rates. It is a shame some of the larger lenders don’t follow suit."

Anil Mistry, director and mortgage broker at RNR Mortgage Solutions, said: "Coventry are aligning with the prevailing trend and adopting the practices of other lenders in light of current conditions, so this announcement comes as no surprise. Nevertheless, it is commendable that they have once again demonstrated their praiseworthy attribute of providing a 48-hour advance notification."

Graham Cox, founder at SelfEmployedMortgageHub.com, added: "It was only last Friday that Coventry announced they were increasing all their residential fixed rate products. Now here we are, only three working days later and they've been forced to increase them again due to the seemingly inexorable daily rise in UK gilt yields and swap rates. But thumbs up to Coventry for giving 48 hours' notice. If only other lenders would take note, it would make life much easier for brokers and much fairer for consumers."