Fixed Rate  

Coventry cuts buy-to-let rates

Coventry cuts buy-to-let rates

Coventry for Intermediaries had cut the rates on its two- and five-year fixed rate products for buy to let clients to their lowest ever level.

The rate on the lender’s two-year fix have fallen to 1.39 per cent, from 1.49 per cent, on a 50 per cent loan-to-value (LTV) and 1.79 per cent, from 2.05 per cent, on its 75 per cent LTV equivalent.

The two-year loan has also seen its product fee drop from £1,999 to £1,499.

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Meanwhile the five year fix has seen rates drop from 2.39 per cent to 2.09 per cent on the 50 per cent LTV and from 2.69 per cent to 2.59 per cent on the 75 per cent equivalent.

In comparison, earlier this month rival lender Metro Bank cut its 65 per cent loan-to-value product for buy-to-let borrowers fixing for five years to 2.79 per cent.

Both Coventry's products incur an additional fee of £1,999.

Kevin Purvey, director of intermediaries at Coventry, said: "We’re delighted to reduce rates across our buy to let two- and five-year fixed ranges.

"Selected rates are now market leading and include the lowest buy-to-let rates we’ve ever offered."

The two-year fixes carry an early redemption charge of 2 per cent for the first year and 1 per cent thereafter.

The five-year products will collect 5 per cent for early settlement in the first year, followed by 3 per cent and then 1 per cent in the last two years.

Coventry said it wanted to show its commitment to the market by making its prices more competitive.

David Hollingworth, associate director of communications at L&C Mortgages, said: "These changes ensure that they have some very keenly rated products vying with others for top slot.  

"Some of the deals are only on offer to 50 per cent LTV and can carry chunky arrangement fees, so won’t be for everyone but it does mean that Coventry is covering all the bases alongside the rest of its range."

carmen.reichman@ft.com