Co-operative Bank launches new 25 year fixed rate mortgage

The Co-operative Bank is launching a new market leading 25-year fixed rate mortgage.

The new mortgage will be available from Friday 31st August and comes with the following features:

A competitive fixed rate of 5.99%
£499 application fee
No early repayment charges after the first ten years
No higher lending charges
Free standard legal and basic valuation fees for remortgages
Customers can make overpayments of up to 5% during the first 10 years
Maximum 95% Loan To Value
Fully portable for any customers who move home

The Government has recently called on lenders to provide longer-term fixed deals to provide stability within the housing market. Customers taking out this new mortgage will not only benefit from protection against any future interest rate rise but will also save money on fees, as there is only one initial application fee to pay over the 25-year term.

Furthermore the new mortgage comes with added green benefits as a donation to Climate Care is made for every year of the mortgage. Houses are one of the largest sources of carbon dioxide emissions in the UK and the annual donation enables Climate Care to offset a fifth of an average home’s carbon dioxide emissions each year for the lifetime of the mortgage. Customers also benefit from a free home energy report.

John Barker, Head of Mortgages at Co-operative Financial Services, said: “This new mortgage offers customers an extremely competitive rate, along with the peace of mind that the rate will remain fixed at this level, whilst offering all the flexibility of a portable product enabling customers to move home and take their mortgage with them.”

Besides offering a comprehensive range of mortgage products, the Co-operative Bankdoes not impose costly Higher Lending Charges. Such charges, which are imposed by other lenders, can potentially cost consumers up to an additional £2,000 when buying a home.