Coventry for intermediaries has announced rate reductions across selected residential mortgage products, cutting rates by up to 16 basis points.

The move follows a change to the lender’s affordability stress tests, which could allow borrowers to secure up to £35,000 in additional lending.

The revised pricing applies to a range of fixed-rate products and is available to both new and existing customers. Notable options include a 2-year fixed rate at 4.00% until 31 December 2027 at 50% loan to value, aimed at interest-only remortgage customers.

The product includes a £999 fee and the choice of either £350 cashback or access to the lender’s remortgage transfer service.

For purchasers, Coventry is also offering a 2-year fixed rate at 3.90% to the end of 2027 at 65% LTV, also with a £999 fee.

The changes come amid growing competition in the residential market as lenders look to attract borrowers who may now qualify for larger loans due to relaxed stress testing.

Coventry’s adjustments are expected to appeal particularly to those looking to remortgage or take advantage of lower pricing for high-equity purchases.

Ben Williams, corporate account manager at Coventry Building Society, said: “We’re continuing our focus on supporting home ownership, and we’re pleased to announce rate reductions for those looking to take that first or next step.

“As well as reducing our rates, we’ve updated our affordability stress testing – meaning some clients may be able to borrow more.

“These positive changes will help brokers and more of their clients achieve their aspirations.”