The Co-op launches market leading 5-year fixed rate mortgage

The Co-operative Bank has a new reward for customers with the launch of its 5-year fixed mortgage exclusive to current account holders.

Available immediately, the product offers a market leading rate of 3.39% for 75% loan-to-value (LTV) or 4.24% for 85% LTV.

The product is open to new and existing current account customers and has an application fee of £999. In comparison to the market average rate of 4.09% offered by the big 5 banks, customers with a 25% deposit could save up to £837 annually on their repayments with this product.

The news comes after The Co-operative Bank re-launched its entire fixed rate mortgage range last week, dropping rates by as much as 60 basis points (0.6%).

James Hillon, Head of Mortgages at The Co-operative Bank, said: "At a time when living costs are rising, many homeowners are looking for the extra security offered by a fixed rate deal. Our new 5-year fix rewards customers who are looking for that extra security, without the need for them to miss out on market leading rates.

"For customers looking to take advantage of the low base rate, the exclusive Lifetime Tracker mortgage is still available. It has no early repayment charges after 3 years so customers can easily alter their mortgage in line with changing living costs," he added.