Coventry Building Society has become the latest in a series of high street lenders to increase its mortgage rates.
The mutual, which is headed by CEO Steve Hughes, said rates would go up from tomorrow for all new residential and buy to let products for new borrowers.
It follows similar moves last week from major players such as HSBC and Santander on fears that the Bank of England will cut its rate more slowly that previously thought in the battle against inflation.
Darryl Dhoffer, an adviser at The Mortgage Expert said: “Coventry Building Society’s decision to hike mortgage rates is another blow to aspiring homeowners, particularly first-time buyers already struggling with rising costs of living. This latest increase comes on the heels of previous upward adjustments, painting a concerning picture of an institution seemingly prioritising profit over the dreams of potential property owners.
“While Coventry cites economic factors as justification for their decision, it’s crucial to recognize the cumulative effect of these repeated hikes. Each increase chips away at affordability, pushing the goal of homeownership further out of reach for many. This disproportionately impacts young people and those on lower incomes, exacerbating existing inequalities in the housing market.”
Stephen Perkins, managing director at brokers Yellow Brick Mortgages, said: “Coventry announcing rate increases is certainly not the start to the week Britain’s borrowers were hoping for. However, at least they give some notice, so current rates can be secured by those ready to do so. We may see more volatility in mortgage pricing this week as lenders balance business levels and service.”
