The expanded society will be called Coventry Building Society and will be based in Coventry. Total membership will increase from over 1.2 million to around 1.5 million, and the overall asset size will increase from £18.4 billion to £21.1 billion.
Coventry’s financial strength will deliver an immediate benefit for many Stroud & Swindon members. It is expected that approximately two thirds of a total of 251,000 savings accounts will see interest rates improved on completion of the merger to match equivalent products offered by Coventry.
In addition, those borrowing members currently paying or linked to Stroud & Swindon’s residential Standard Variable Rate (SVR) of 5.99% will benefit from a reduction in their mortgage payments as they move onto Coventry’s lower SVR which currently stands at 4.74%.
David Stewart, chief executive of Coventry Building Society, said: “Coventry’s performance over the last 3 years has demonstrated the strength of our traditional building society model. I believe that the merger with Stroud & Swindon Building Society will help us build on recent successes and bring the benefits of our prudent and member-focussed approach to a wider membership.”
John Sutherland, chief executive of Stroud & Swindon Building Society, said: “Today’s announcement is excellent news for Stroud & Swindon members who have the opportunity to join one of the UK’s strongest and most profitable building societies. In considering a number of options, we believe that Coventry Building Society’s commitment to long term member value, fairness, strategic prudence and local communities, provides Stroud & Swindon members with the best possible future. We strongly recommend Stroud & Swindon members to vote in favour of the merger.”
