Coventry Building Society 

Coventry cuts rates on buy-to-let range

Coventry cuts rates on buy-to-let range

Coventry has cut buy-to-let fixed rate mortgages by 0.2 percentage points.

The lender is offering two-year fixed rates at 1.49 per cent up to 50 per cent loan-to-value (LTV) and 2.05 per cent up to 75 per cent LTV.

Both of the products come with £1,999 fees and early repayment charges of 2 per cent until 30 April 2019 then 1 per cent until 30 April 2020.

Kevin Purvey, director of intermediaries at Coventry, said: “We’re very happy to reduce rates across our buy-to-let two-year fixed range from 50 per cent to 75 per cent LTV. 

“With competitive rates, a range of LTVs and a variety of fee options, this range is ideal for brokers’ clients looking to lock in a competitive rate for the short term.

“Plus, all of our products are application fee-free and include a valuation of up to £700 for buy-to-let mortgages.”

Bob Riach, principal at Scunthorpe-based Riach Financial Advisers, commented: “They are good rates, but in this area, where an average buy-to-let is about £90,000 to £100,000, a fee like that would kill it.

“When you look at buy-to-lets, they tend to be smaller properties. You can buy a buy-to-let that may be run down and repossessed at a reduced price. Having a £2,000 fee would kill that sort of thing. 

“I can see it being competitive down south, with larger properties. You have to think, with the amount the client is borrowing, is that fee viable?”