Coventry Building Society has told brokers it will close a range of residential and buy-to-let rates tomorrow and will come back with higher offers a day later.  

The mutual says it will close products at 8pm on Thursday 15 June, and come back to the market at 8am on Friday 16 June.  

As part of the changes all BTL and residential fixed-rate offers, including offset and interest-only, will increase, with all tracker rates closing.  

The lender says the move is in line with its commitment to give brokers two days’ notice about product changes.  

Brokers gave the lender credit that it has stuck to its 48-hour pledge in a fast-moving market, with swap rates rising on ‘higher for longer’ Bank of England base rate expectations.  

Dimora Mortgages director Jamie Lennox says: “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.”  

SelfEmployedMortgageHub.com founder Graham Cox adds: “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.”