Co-operative Bank launches new two year fixed rate mortgage

The Co-operative Bank is launching a new market leading two-year fixed rate mortgage this week (Friday 7th December).

Details of the new product are as follows:

2 year fixed rate mortgage at 5.39% until 28 Feb 2010
£999 fee
Maximum 95% LTV
Free standard legal and basic valuation fees for remortgages
Flexibility to make overpayments and underpayments
No higher lending charge

This new product offers excellent overall value to all borrowers whether they are buying for the first time, moving home or simply remortgaging from another lender. Furthermore borrowers who are remortgaging will also benefit from free legal and valuation fees.

John Barker, Head of Mortgages at Co-operative Financial Services, said: “This new mortgage offers customers a very competitive rate, whilst at the same time providing them with reassurance that the rate will remain fixed at this level for the first two years”.

In addition to offering a comprehensive range of mortgage products, the Co-operative Bank does 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.

This new product is part of The Co-operative Bank’s range of green mortgages and as a result customers taking out this mortgage can benefit from a number of positive environmental features. For the duration of the mortgage, the Co-operative Bank will make an annual donation to Climate Care to help tackle global warming. As houses are one of the largest sources of carbon dioxide emissions in the UK, the Bank’s annual donation to Climate Care enables them to offset around one quarter of an average home’s carbon dioxide emissions each year for the lifetime of the mortgage.