Building Society is reducing its mortgage rates again for both existing and new borrowers,
with effect from 1 January 1999. This move follows todays announcement that the bank
base rate has been reduced by 0.5%.
The reduction of 0.5% in the Societys Standard Variable Mortgage Rate to 7.70%
will mean that an existing borrower with an interest only mortgage of £70,000 will save
£27.92 per month, an equivalent of £335 in a whole year (includes MIRAS).
The Societys Privilege Rate will also be reduced by 0.5% taking it down to ^.95%,
making it the lowest variable mortgage rate charged by any high street lender to their
The Privilege Rate was introduced in May 1996 for existing borrowers who have been on
the same mortgage scheme for five years or more. Over 33,000 of the Societys
existing borrowers are benefiting from this loyalty mortgage discount scheme.
Martin Ritchley, Chief Executive of the Coventry commented:
"Once again this is very good news for borrowers and comes at a particularly
welcome time just ahead of Christmas.
"Coventry Building Society is committed to ensuring its members continue to
receive the benefits of belonging to a building society and this demonstrated by the fact
that existing borrowers make significant savings, year after year, by qualifying for the
Privilege Rate, which at 6.95% is the lowest variable mortgage rate charged by any high
"The cut in mortgages rates may also provide some welcome stimulus to the property
market and with the prospect of even more cuts to come in the New Year, people who are
moving would be well advised to consider the Coventrys range of competitive
discounted mortgage products.
"Our savings rates will also be reviewed by 1 January, but because we are a
building society which does not have to pay dividends to outside shareholders, we will
ensure that our savings products remain competitive and that savers will continue to be
able to benefit from being with Coventry Building Society."
Savings On Standard Variable Mortgage Rate and Variable Privilege Rate: