Coventry Building Society is reducing its mortgage rates again for both existing and new borrowers, with effect from 1 January 1999. This move follows today’s announcement that the bank base rate has been reduced by 0.5%.

The reduction of 0.5% in the Society’s 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 Society’s 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 existing borrowers.

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 Society’s 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 street lender.

"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 Coventry’s 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: