Co-op cuts SVR for mortgage borrowers

Co-op announces SVR mortgage rate rise of 0.50%

The Co-operative has raised the standard variable rate on its mortgages from 4.24 per cent to 4.74 per cent in a move that will add £15 to the monthly cost of a mortgage.
Borrowers face £300m SVR mortgage payment rise

More than a million people will be hit by standard variable rate (SVR) mortgage hikes today – adding a collective £300 million to repayments over the next year.

Wednesday, 17 December 2008 12:00

The Co-operative Bank has become the latest mortgage lender to slash its standard variable rate (SVR) for borrowers.

It is making a 0.5 per cent cut, which is half of the one per cent cut the Bank of England made to the base rate earlier this month.

And it means the Co-operative's SVR will fall from 5.24 per cent to 4.74 per cent, a change which will come into effect on January 1st.

Terry Jordan, head of mortgages for the Co-operative, said it was attempting to balance the needs of both its savings and mortgage customers.

He added: "Our SVR remains very competitive against the market and throughout the recent financial turmoil The Co-operative Bank has managed to hold a position of financial strength, continuing to offer customers an extensive range of mortgage and savings products.

"This decision will help us maintain that position going forward."

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