Co-operative Bank relaunches 25-year fixed rate mortgage

The Co-operative Bank is relaunching its 25-year fixed rate mortgage, with a market-leading rate of 5.95%. The new mortgage will be available from Monday 12th November and comes with the following features:

A competitive fixed rate of 5.95%
£599 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

John Barker, Head of Mortgages at Co-operative Financial Services, said: “This new mortgage will suit customers who are looking for the peace of mind that a longer term fixed mortgage can offer. However they will not only benefit from an extremely competitive fixed rate, but they will also have the flexibility of a portable product, which will allow them to take their mortgage with them if they want to move.”

This year the Government has 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 the low fixed rate, 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.

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