The Coventry and Stroud & Swindon Building Societies have confirmed they are to merge.
Coventry is the UK’s 3rd largest society and one of the strongest, having recently declared healthy profits of £56.2m for 2009. Stroud & Swindon are the 11th largest, and their branch network should make a good geographical fit for Coventry.
Stroud & Swindon borrowers whose mortgages are linked to the lenders standard variable rate of 5.99% will receive a substantial windfall as they will switch to Coventry’s lower svr of 4.74%.
The merger will reduce further the choice for borrowers seeking a home for their mortgage, and is subject to the approval of the Financial Services Authority and Stroud & Swindon members, as the Coventry board has already approved the move.
The new society will retain the Coventry name.
