Godiva/Coventry BTL Flexx for Term Mortgages

KarenLandlord

The Coventry BS/Godiva have not reduced their variable rate for these BTL mortgages, even though they have always adjusted them up and down in line with the Bank of England and even though they have reduced their SVR and savings rates. All of 1000s who have these mortgages need to complain. They have now  withdrawn the product. This is a call to action and hopefully someone in the press will pick this up. The banks are being urged by the Govt at the moment to act fairly!

Glover1862

Already a thread about this.
https://forums.moneysavingexpert.com/discussion/6123293/coventry-building-society-not-cutting-rates#latest

Thrugelmir

Coventry fund their BTL portfolio through debt securitisation. Unsurprisingly the demand from investors for such issues has evaporated in recent weeks. As BTL mortgages will be priced to reflect the underlying risk to the lender and correspondingly the investors themselves. Hence the product withdrawl. With non consumer unregulated lending there's no protection I'm afraid to say. As a business owner you will have been considered to be fully aware of the risks involved along with the all potential downsides when you originally took the mortgage out. BTL lending is almost totally on a non advised basis. . 

amnblog

They have tended to follow the BOE rate but these products are independent of the BOE rate and CBS control ultimately where the rate goes.
They will make a business decision on what to do here; It wont be a question of fairness unless they feel fairness and the business result align.

Glover1862

amnblog said:

They have tended to follow the BOE rate but these products are independent of the BOE rate and CBS control ultimately where the rate goes.
They will make a business decision on what to do here; It wont be a question of fairness unless they feel fairness and the business result align.

I agree, as I mentioned on the other thread, as they have no ERC and you can find a better product then leave, I’m considering locking in a product transfer to their 5yr offset at 1.89% no fee. There is a meeting on 15th so if nothing changes then proceed or withdraw if they reduce the rate.

Having only the rate increases applied and not the reduction is an issue for me but I’ll do something positive about it, either with them or look elsewhere, I’m only on 30% LTV.