Coventry for intermediaries will return to the buy-to-let market with new five-year fixed-rate products and higher stress rates on Friday (7 October). 

The broker-only arm of Coventry Building Society says highlights of the range include a BTL five-year fix at 5.85% to 30 April 2028 at 75% LTV, with a £1,999 fee. 

And a BTL portfolio five-year fix at 5.95% to 30 April 2028 at 75% LTV, with a £1,999 fee. 

The business says: “As part of its return to the BTL market, and to reflect the current economic outlook, Coventry for intermediaries has also increased its BTL stress rate.” 

It adds that its online affordability calculator has been updated with the new stress rate “so brokers can check whether the new BTL products will be the right fit for their clients”. 

The unit’s new launch comes after earlier this week the average two-year fixed-rate mortgage on the market topped 6% for the first time in 14 years. A typical two-year fix stood at 6.07% on Wednesday, according to Moneyfacts.   

The last time an average two-year fix was higher than this was in November 2008, when it stood at 6.31%, says the data group.   

The amount of mortgage products on the market fell by 41% to 2,273 last week, as firms pulled products to work out how to reprice them as the cost of debt for the government and companies rose on international money markets, following Chancellor Kwasi Kwarteng’s tax-cutting mini-Budget earlier this month.