Coventry Building Society is reducing its mortgage rates again, for both existing and new borrowers, with effect from 1 February 1999. This move follows today’s announcement that the bank base rate has been reduced by 0.25%.

The reduction of 0.25% in the Society’s 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 UK’s 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 customers.

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 Society’s existing borrowers are benefiting from this loyalty mortgage discount scheme.

The Society’s 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 Coventry’s range of competitive discounted and variable mortgage products.

"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: