Building Society is reducing its mortgage rates again, for both existing and new
borrowers, with effect from 1 February 1999. This move follows todays announcement
that the bank base rate has been reduced by 0.25%.
The reduction of 0.25% in the Societys Privilege Rate to 6.70% makes it the
lowest variable mortgage rate charged by any high street lender to their existing
borrowers, this position was recently endorsed by Moneyfacts, the UKs Leading
Authority on Savings and Mortgage Rates, when in 1998, for the second successive year, it
named Coventry Building Society as the lowest cost mortgage lender for established
A Privilege Rate borrower with an interest only mortgage of £70,000, when compared to
a borrower paying 7.45%, will make a saving of £41.88 per month, an equivalent of
£502.56 in a whole year (includes MIRAS).
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.
The Societys Standard Variable Mortgage Rate will be reduced by 0.25% to 7.45 %
from 1 February 1999. This will mean that an existing borrower with an interest only
mortgage of £70,000 will save £13.96 per month, an equivalent of £167.50 in a whole
year (includes MIRAS).
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 into the New Year.
"These rates along with our highly competitive new business portfolio, clearly
demonstrate the benefits of borrowing from a building society. Coventry has just achieved
record results in 1998, gaining more than three times out natural market share of net
mortgage lending. There can be no doubt that consumers would be significantly
disadvantaged, if the remaining building societies converted to PLC status.
"The cut in mortgage rates provides an added boost to the property market and with
the prospect of even more cuts to come during the year, people who are moving would be
well advised to consider the Coventrys range of competitive discounted and variable
"Our savings rates will also be reviewed by 1 February, but because we are a
building society which does not have to pay dividends to outside shareholders, we will
ensure tat 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:
||Standard Variable Rate Monthly
||Privilege Rate Monthly
||Existing Rate 7.70%
||New Rate 7.45% From 1 February 1999
||Existing Rate 6.95%
||New Rate 6.70% From 1 February 1999
||Savings in a full year by a Privilege Rate