Coventry Building Society has agreed merger terms with Stroud & Swindon Building Society,
The Coventry is currently the UK’s third largest building society, while the Stroud & Swindon is the eleventh.
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.
Those borrowing members currently paying or linked to Stroud & Swindon’s residential Standard Variable Rate (SVR) of 5.99% will see a substantial reduction in their mortgage payments as they move onto Coventry’s lower SVR of 4.74%.
David Stewart, chief executive of Coventry Building Society, said: “Coventry’s performance over the last three 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.””