Coventry Building Society’s tranche of 90 per cent loan to value (LTV) lending will only be available until Monday evening.
Mortgage Solutions revealed the lender was going to be re-entering the 90 per cent LTV market earlier this week with a pair of five year fixed rate deals launching today.
However, the mutual has now confirmed these will only be available until 8pm on Monday to “manage its capacity to support the market while protecting its service levels and its wider proposition.”
But Coventry BS said it would consider opening another tranche if it could meet its service requirements.
The high LTV space has been a point of contention over the last two weeks as demand from borrowers has risen with lockdown easing, but lenders have been unable to keep up.
This has resulted in several lenders leaving the market while others have been limiting availability on a daily basis.
Kevin Purvey, director of mortgage distribution at Coventry Building Society, said: “We’ve watched how high demand for 90 per cent LTV products has affected other lenders because of a lack of supply in the wider market.
“We want to participate and support the market but without compromising on service, which is something we have a high reputation for and we know is something brokers value.
“Although this tranche of business will ease market demand only a little in the short term, we may consider it again if it strikes the right balance between supply and service.
“Brokers need transparency and certainty so they can support their clients. We know they’ll understand the need for lenders to find sustainable solutions to meet high demand in this market.”
Owain Thomas is features and contributing editor of Mortgage Solutions and editor of Specialist Lending Solutions.
He also has experience in the protection, pensions, workplace benefits and HR areas.
Owain has won two Headline Money Awards and the Protection Review’s Journalist of the Year award.