Co-operative Bank relaunches 25-year fixed rate mortgage

Tuesday, 13 November 2007 12:00

Co-operative Bank is relaunching its 25-year fixed-rate mortgage at 5.95 per cent (6.1 per cent for comparison).

The relaunch is 0.16 per cent higher than the August rate - but is still below competitors Kent Reliance and Nationwide, which both have 25-year fixes at 5.98 per cent.

The Co-operative deal offers overpayments of up to five per cent in the first ten years, no early repayment charges after ten years and has a maximum loan-to-value of 95 per cent.

Application fees stand at £599 and early repayment charges are at five per cent until January 2013, then four per cent until January 2018.

Remortgage customers are provided with free standard legal and basic valuation fees.

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."

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