The Co-op helps homeowners with new mortgage rates

Ahead of the expensive Christmas season, The Co-operative Bank is offering customers a helping hand by cutting more rates and offering the option of fee-free mortgages across its product range.

From Friday (23 November) customers will be able to organise their finances for 2013 by locking into the bank's market leading rates which now include a 5 year fix at 2.79% for 60% LTV. In addition, the Co-operative Bank has launched a wider range of reduced rates specifically suitable for first-time buyers borrowing at 90% and 85% LTV.

Following high levels of demand for the bank's new 90% LTV 2 year fixed rate mortgage at 3.99%, the Co-operative has now extended this rate to its Share to Buy mortgage. This enables borrowers to get on the property ladder by taking out a mortgage jointly with friends, a partner or relatives.

As part of its pledge to increase mortgage availability and to support the first-time buyer market, the bank has committed to holding these rates until the end of the year. In addition, from January 2013, members holding a mortgage with the Co-operative will also have the opportunity to benefit from the bank's re-launched membership scheme.

James Hillon, Head of Mortgages at The Co-operative Bank said: "With the Christmas rush upon us and a new year fast approaching it's a good time to review your finances and to look at ways to cut down on outgoings in 2013. We're determined to give customers a helping hand and at a time when the average mortgage arrangement fee is over £1400, we're offering fee-free mortgages across all LTV's, in addition to a wide range of market leading rates."

"We're also increasing our support for first-time buyers through the Funding for Lending Scheme by extending our market leading 90% LTV mortgage to those buying with friends via Share to Buy. In addition, customers who are able to find a 15% deposit will now also benefit from reduced rates."