Current account holders of the Co-operative Bank are now able to avail of a new five year fixed rate mortgage.
Those looking for a 75% LTV contractor mortgage can get the five-year fix at 3.39%, whilst the interest rate for people who can only put down 15% deposit is 4.24%. The new home loan is open to both new and existing Co-operative Bank current account holders, but they will have to pay a £999 application fee.
The bank claims that customers putting down a 25% deposit could save as much as £837 a year with the deal, compared to equivalent mortgages from the UK’s big five banks.
The Co-operative’s head of mortgages, James Hillon, said a lot of homeowners want the security that comes with a fixed rate mortgage, especially when inflation is squeezing household budgets. This new five-year fix will benefit customers who want that added security at a market-leading rate.
The bank is obviously keen to increase its share of the mortgage market. Earlier this month, it reduced the rates on all of its fixed-rate products.
Meanwhile, mortgage experts think the current crisis in the Eurozone has set the housing market recovery back by up to three years. The three-month Libor rose to 0.96% in October, from its August rate of 0.85%.
Tony Ward, the chief executive of Home Funding, said the Eurozone crisis has severely dented the recovery in both the mortgage and housing markets. Ray Boulger from John Charcoal agreed with his sentiment saying the longer the crisis continues, the longer it will take to recover. At present, we are not seeing any signs of a quick solution.
© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.
