"We’ve launched trackers with no ERCs so they have options if the Bank Base Rate rises too quickly for their liking."
Reduced rates include five-year fixed rates between 85% and 95% LTV. Five-year fixed rates now start from 5.80% at 85% LTV, 5.90% at 90% LTV, and 5.99% at 95% LTV.
Highlights of the new range include three-year fixed rates from 5.89% up to 75% LTV and 5.99% up to 85% LTV, both with no product fee.
New two-year Flexx trackers start at 3.20% at 75% LTV and 3.30% at 75% LTV, both with a £999 product fee and no ERCs.
Jonathan Stinton, head of intermediary relationships at Coventry for intermediaries, said: “Three year fixes is an under-served part of the market. Mortgage brokers and borrowers have been telling us it’s what they want, so we’ve added this to our range to improve the choices available.
“Many borrowers like the certainty of fixed mortgage rates but the typical two or five-year terms might not appeal to everyone. Some borrowers may be worried about whether two years will be long enough to outlast market volatility, while others may think five years is not right either. In today’s environment a three-year fixed rate could hit the sweet spot in between.
“On the other hand though, fixed rates don’t always suit every borrower and many people may be considering dipping their toes into variable rates, possibly for the first time in a while. We’ve launched trackers with no ERCs so they have options if the Bank Base Rate rises too quickly for their liking.
“There’s no on-size-fits-all approach and so we’re trying to create a broad range of choice that helps meet a variety of mortgage needs. As part of this, we’ve also reduced rates at 85% to 95% LTV which will increase the options available for first-time buyers in particular.”
