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