Coventry to cut mortgage rates

Coventry Building Society is set to cut its Privilege mortgage rate on November 1st.

The lender will reduce rates for borrowers who have been a member of the society for five years or more to 6.50 per cent.

Conventry''s standard variable rate mortgage deal will also be reduced by 0.25 per cent to 6.84 per cent.

"The society has over twice as many borrowers on Privilege rate as standard variable rate," said Rachel Haworth, head of marketing at the Coventry.

She added: "These reductions maintain the competitiveness of our rates, despite the fact that funding costs have not fallen."

The rate cuts will come into effect for new customers immediately, whereas Privilege customers will have to wait until the end of the month to benefit from new rates.

Meanwhile, Yorkshire Building Society has taken over its rival Barnsley Building Society.

The takeover follows the announcement by the smaller lender that it was exposed to £10 million of losses as a result of the Icelandic banking crisis.

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