Co-Operative Bank launches new tracker mortgage

The Co-operative Bank has launched a new tracker rate mortgage, details of the new product are as follows:

2-year tracker product currently at 5.29% variable (Bank of England Base Rate - 0.46%) £999 application fee
Free legal and valuation fees for remortgages
Flexibility to make overpayments and underpayments
Maximum 95% LTV
No Higher Lending Charge

The new two-year tracker mortgage guarantees to track the Bank of England Base Rate, currently 5.75 per cent, minus 0.46 per cent for the initial period of the loan. Furthermore the new mortgage product offers excellent overall value to all borrowers whether buying for the first time, moving home or simply remortgaging from another lender. Borrowers choosing to remortgage will also benefit from free legal and valuation fees.

John Barker, Head of Mortgages at Co-operative Financial Services, said: “Customers taking out this new mortgage will not only benefit from a very competitive rate, but will also have the reassurance that the rate will remain under the Base Rate for the initial period of the loan”.

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.

As part of the Co-operative Bank’s range of green mortgages, customers taking out this mortgage can benefit from a number of positive environmental features including receiving a free home energy report with their property valuation, which assesses the energy efficiency of the property and identifies ways in which it can be improved.

In addition, for the duration of the mortgage, the Co-operative Bankwill make an annual donation to Climate Care to help tackle global warming. Houses are one of the largest sources of carbon dioxide emissions in the UK and, by using the Bank’s annual donation, Climate Care will be able to offset around one quarter of an average home’s carbon dioxide emissions each year for the lifetime of the mortgage.