Coventry Building Society offers lower mortgage rates

Coventry Building Society has announced that it is cutting rates by more than half a percentage point on its latest mortgage product range.

A range of new loans, including fixed-rate and tracker products, are now on offer to customers, with a variety of loan-to-value (LTV) levels available.

The building society is offering a two-year, fixed-rate residential mortgage at 3.5 per cent, available with up to a 50 per cent LTV or a fixed-rate of 3.65 per cent for borrowers looking for an LTV of up to 70 per cent.

It has also launched a two-year tracker mortgage at 70 per cent LTV that tracks the Bank of England base rate, currently set at 0.5 per cent.

A free valuation and remortgage transfer service is available with both products.

Colin Franklin, sales and marketing director at the Coventry, commented: "We continue to have a strong appetite for growing our mortgage business and expect this new range to be very well received by intermediaries and customers alike."

Statistics released by the Financial Services Authority earlier this year found that, in the second quarter of 2009, lending for house purchase represented a stronger share of new lending than the remortgage business.