Coventry raises mortgage rates in “a symbolic turning point for the mortgage market”

"The Coventry’s decision to raise residential mortgage rates signals that global tensions, particularly in the Middle East, are starting to affect the market. Combined with ongoing uncertainty in the UK economy, this move is a clear warning that other lenders may follow suit in the coming days. Just as confidence was beginning to return, these rate hikes could put pressure on borrowers waiting for the right time. If you’ve been holding off, now might be the time to act before conditions tighten further."

"Now that a bigger lender such as Coventry have hiked, more lenders will likely follow suit. There is currently huge uncertainty around both the upcoming Budget, specifically how that Budget will be funded, and the ongoing conflict in the Middle East. Hopefully the increases aren’t too dramatic but this could be a symbolic turning point for the mortgage market."

"The great mortgage rollercoaster continues its ride with Coventry now increasing rates. SWAP rates have risen sharply this week, possibly spooked by the rumour mill and rhetoric coming out of the Treasury for the upcoming Budget, the conflict in the Middle East, and unexpected economic data released in the US recently. Time will always tell with these things but for now, we don't expect to see many lenders decreasing rates any further for the time being on certain products."

"Readers should take note, as with the Coventry increasing rates, other larger lenders are sure to follow over the next week or two. With wholesale markets increasing costs to lenders, this is simply passed onto the nation’s borrowers. If you able to apply for your mortgage, whatever the type, just get on with it now. Secure your deal whilst you can, as we look set to see a reversal of the last few months' drops."