Mortgage borrowers urged to act now as cheap 3.89% rate disappears

, one of the first lenders to offer cheaper rates following the , has announced it is increasing them again. Financial advisers are now warning borrowers looking for a fixed-rate deal that the window of opportunity for cheaper rates may potentially be closing before it was fully opened.

Coventry's decision to withdraw the two year 3.89% is likely to be because of increased demand, they claim. Lenders will earmark a sum of money they can lend at a rate and once that pool of cash has been allocated it has to withdraw the rate.

Expectations current round of import tariffs could trash the global economy appeared to have made borrowing cheaper, according to experts.

MPowered Mortgages, TSB and Barclays were among the lenders to cut rates following the tariff announcements.

Hannah Bashford, director at told news agency NewPage how Coventry will have been swamped by demand.

She said: "Well that was short-lived. It's likely that Coventry were swamped with applications when the other big banks didn't respond to the reduction in swap rates in the same way, so closing their books is going to be the most sensible option to protect their balance sheets and maintain service levels.

"Given the value of swap rates currently, it is a shame that we're not seeing more big banks reducing, but with such volatility it is not really surprising."

Andrew Montlake, managing director at said: "Coventry were on a big breakaway from the rest of the peloton and were likely flooded with applications. With China announcing another salvo in the ongoing global trade war, swap rates could once again head south. Borrowers need to be prepared and ready to strike in what is a fast-moving market."

Riz Malik, independent financial adviser at commented: "Coventry should be commended for making the bold move but with markets yo-yoing, their resolve has been tested. There is still room for cuts but lenders will be conservative until sense and sensibility returns."

Harry Goodliffe, director at said: "That didn't last long, did it? Coventry dipped their toe with cheaper rates, but as soon as swap rates twitched, they pulled back - and most lenders didn't even flinch. Can't really blame them though; the market's been a rollercoaster and no one wants to get caught out. I still think we'll see more cuts later this year, especially if the Bank of England follows through with a base rate cut. But right now? It's all a bit of a false start."

Michelle Lawson, Director at said the markets are still volatile due to Trump so, "borrowers need to take advice from brokers and be organised if they want to benefit from any temporary rate decreases".

Emma Jones, Managing Director at said the rate increases by the Coventry highlighted how uncertain current market conditions are. "Rates can appear and be gone in a very short timeframe."

Justin Moy, managing director at commented: "Full marks to Coventry BS, who took the bold decision to cut rates as Swap rates fell, but as other lenders didn't follow, they were left with a leading 2-year fixed rate and attracted significant amounts of business. Most of the High Street lenders have not moved their rates, especially for those 1.4m borrowers who need a new deal in 2025. At least Coventry BS give borrowers 48 hours notice of any changes, allowing those looking for a low rate to take advantage. It's unclear if other lenders will cut rates in the next few days, but with Swap rates fluctuating it promises to be an uncertain few weeks coming up."