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[10 FEB 99] COVENTRY BUILDING SOCIETY PRESS RELEASE
New Mortgage Portfolio From Coventry Building Society

Following kast week’s announcement from the Bank of England that the base rate has reduced still further, Coventry Building Society launches a new mortgage portfolio on Friday 12 February. The new portfolio reflects immediately changes in the market after the fifth successive interest rate cut.

The portfolio includes the introduction of a new market leading 6.30% variable rate mortgage with an introductory discount of 1.85% for the first 6 months (current applied rate 4.45%). This product is designed to suit the borrower looking for flexibility in how they administer their mortgage repayments. Capital repayments up to a limit of 10% can be made in years 1 and 2 with no restriction thereafter. Other key features include:

  • Payment Breaks
  • Free mortage valuation
  • No arrangement fee
  • No mortgage administration fee
  • Free remortgage package

For borrowers choosing a competitive rate of interest at the outset of their mortgage, with the security of knowing if interest rates increase. The introduction of the Society’s 5 year capped product is ideal. Key features include:

  • Competitive rate of 5.75% capped yntil 30.05.04
  • No arangement fee
  • Free Remortgage package

The new portfolio also offers both discounted and fixed rate products giving complete choice for both new and existing customers.

From 1 March 1999, a 0.40% reduction will be applied to both the Society’s Privilege and Standard Variable Rate. The Standard Variable Rate will reduce to 7.05% and the Privilege Rate mortgage will reduce to 6.30% remainign the lowest variable mortgage rate on the high street. Over 33% of Coventry Building Society’s borrowers benefit from this loyalty mortgage scheme whci was introduceed in May 1996 for borrowers who have been on the same mortgage scheme with the Society for five years or more.

Martin Ritchley, Chief Executive of Coventry Building Society commented:

"The flexibility and choice of products within our new portfolio offers something to suiit both new and exisiting customers. We have now had five consectuive interest rate cuts and launching this new portfolio so quickly after the Monetary Policy Committee’s announcement ensures that this further benefit is passed on to out sutomers immediately.

"Our decision to apply a 0.40% reduction to our mortgage rates will also reduce the impact on our savers. This decision reflects the need to balance the interest of both our savers and borrowers and ensure that all our members continue to reap the benfits of belonging to a building society. Savings rates will therefore be reviwed prior to 1 March 1999."

Mortgages Available From 12 February 1999

 

FIXED RATE MORTGAGES TO 31.05.2004 (No Overhanging ERPs) PORTABLE
MORTGAGE RATE MAX LTV APR TERM OF FIXED RATE ARRANGEMENT FEE EARLY REDEMPTION PENALTIES
5.45% 90% 6.4% to 31.05.2004 295
(non-refundable)
6 months interest until 31.05.2005

 

FIXED RATE MORTGAGES TO 31.05.2002 (No overhanging ERPs) PORTABLE
MORTGAGE RATE MAX LTV APR TERM OF FIXED RATE INCENTIVE * EARLY REDMEPTION PENALTIES
5.99% 95% 6.7% to 31.05.2002 No arrangement fee Free mortgage valuation (max. 650) No mortgage admin fee 6 months interest until 31.05.2002
5.805 95% 6.8% to 31.03.2004 295 Fee (non-refundable) 6 months interest until 31.03.2004

* In addition for Remortgagors Only - Disbursement and Legal fess paid if a solicitor nominated by the Society is used or for Customers using their Own Solicitor a 215 contribution towards Disbursement and Lagal fees paid after completion.  Scottish Cases will only receive a 215 contribution.   Free Remortgage Transfer Service conditions apply.

 

CAPPED RATE MORTGAGES TO 31.05.2002 linked to Variable Rate 7.50% (with effect from 1 march 1999) PORTABLE
CURRENT APPLIED RATE MAX LTV APR TERM OF MORTGAGE ARRANGEMENT FEE EARLY REDEMPTION PENALTIES
5.75% 6.4% 95% to 31.05.2004 NONE * 6 months interest until 31.05.2004

* In addition for Remortgagors Only - Free Mortgage Valuation (max. amount 650). no Mortgage Administration fee payable.   Disbursement and Legal Costs paid if a Solicitor nominated by the Society is used or for Customers using their Own Solicitor a 215 contribution towards Disbursement and Legal fess paid after completion.  Scottish Cases will recieve a 215 contribution.   Free Remortgage Transfer Service conditions apply.

 

DISCOUNTED RATE MORTGAGES TO 31.05.2001
Linked to Standard Variable Rate 7.05% (with effect from 1st March 1999)
LEVEL OF DISCOUNT MAX LTV APPLIED MORTGAGE RATE APR TERM OF DISCOUNT ARRANGEMENT FEE EARLY REDEMPTION PENALTIES
3.50% 95% 3.55% (minimum rate payable 3.20% until 31.05.01) 6.5% to 31.05.2001 295* (non-refundable) 12 months interest until 31.05.2001 - then 6 months interest until 31.05.2004
3.00% 95% 4.05% (minimum rate payable 3.70% until 31.05.01) 6.3% to 31.05.2001 None# 12 months interest until 3.05.2001, then 6 months interest until 31.05.2004

*Coventry HomeGuard (Option C) Building and Contents Insurance is mandatory until 31.05.2001.  For leasehold properties only, the madatory insurance is 12 Month Accident, Sickness and Unemployment cover.  If mandatory insurance is cancelled within the scheme period, a 0.25% loading will be added to the scheme applied rate.

#In addition for Remortgagors Only - Free Mortgage Valuation (max. amount 650). No Mortgage Administration fee payable.  Disbursement and Legal Costs paid if a Solicitor nominated by the Society is used or for Customers using their own Solicitor a 215 contribution towards Disbursement and Legal fees paid after completion. Scottish Cases will only receive a 215 contribution.  Free remortgage transfer service conditions apply.

 

DISCOUNTED RATE MORTGAGES TO 31.05.2004
Maximum Rate Payable Guaranteed not to exceed 7.05% during Scheme Period
linked to Standard variable Rate 7.05% (with effect from 1st March 1999)
There are no restrictions on capital repayments with these mortgages (normal conditions apply).  ALL ARE PORTABLE
LEVEL OF DISCOUNT MAX LTV APPLIED MORTGAGE RATE APR TERM OF DISCOUNT ARRANGMENT FEE EARLY REDEMPTION PENALTIES
1.06% 85% 5.99% (minimum rate payable 5.00% until 31.05.04) 6.5% to 31.05.2004 None* None
0.75% 95% 6.30% (minimum rate payable 5.25% until 31.05.04) 6.6% to 31.05.2004 None* None

*In addition for Remortgagors Only - Free Mortgage Valuation (max. amunt 650). no Mortgage administration fee payable.   Disbursement and Legal Costs paid if a solictor nominated by the Society is used or for Customers using their Own Solictor a 215 contribution towards Disbursement and Legal fees paid after completion.  Scottish casses will only receive a 215 contribution.   Free Remortgage Transfer Service conditions apply.

 

VARIABLE DISCOUNTED RATE* linked to variable Rate 6.30% (with effect from 1 March 1999)
CURRENT APPLIED RATE APR MAX LTV LEVEL OF DISCOUNT TERM OF DISCOUNT INCENTIVE EARLY REDEMPTION PENALTIES
4.45% 6.4% 95% 1.85% 6 months No arrangements fee Free mortgage valuation (max, 650) No mortgage admin fee 215 cashback# 6 months' interest in Years 1 and 2

# Or for Remortgagors as an alternative to the 215 cashback - Disburesemtn and Legal costs paid if a Solicitor nominated by the Society is used.  Not available for properties located in Scotland.  Free Remortgage Transfer Service conditions apply.

* Features - With this mortgage, customers can repay up to 10% of the Orginal Mortgage Advance in Years 1 and 2 without penalty.  There are no restrictions on Capital Repayments after Year 2.  Up to 6 months Payment Holiday per year can be taken providing 6 consecutives monthly payments have been made and an equal credit has beeen built on account through overpayments.

 

VARIABLE RATE^
linked to Standard Variable rate 7.05% (with effect from 1st March 1999)
VARIABLE RATE APR MAX LTV CAPITAL REPAYMENTS INCENTIVE* EARLY REDEMPTION PENALTIES
6.30% 6.6% 95% NO RESTRICTIONS (normal terms apply) No Arrangement fee. Free Mortgage Valuation (max 650). No Mortgage Admin fee None

^In addition for Remortgagors Only - Disburement and Legal Costs paid if a solicitor nominated by the Society is used or for Customers using their own solictor a 215 contribution towards Disbursement and Legal fees paid after completion.  Scottish cases will only receive a 215 contribution.   Free Remortgage Transfer Service conditions apply.

*Part & Part Mortgages - Variable Rate can be combined with any Current New Business scheme. The minimum loan for the Variable Rate is 10,000.  The New Business scheme must represent at least 50% of the mortgage advance.  Cashback and Incetives paid subject to product terms and conditions.

MORE INFORMATION: Press Office 01203 635653
  

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CWN / Business / A-Z / Coventry Building Society / 10 Feb 99

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