Co-op: Cheaper tracker mortgages

Thursday, 21 February 2008 12:00

The Co-operative Bank has ditched application fees on fixed-rate mortgages and reduced its tracker product rates.

Customers applying for the bank's range of fixed-rate products, which include a short two-year mortgage at 5.79 per cent and a longer 25-year deal at 5.95 per cent, will see their application fee waived.

Meanwhile, all tracker mortgage rates have now been cut by 0.25 per cent in line with the recent Bank of England base rate reduction.

The Co-operative was keen to promote the two-year tracker mortgage in particular, which is now available at a rate of 5.24 per cent.

Its trackers come with an application fee of £999, are available for maximum loans of 90 per cent of the property price, and incur early repayment charges of three per cent for two years.

The new deals on fixed-rate mortgages, while only available for a limited period, are tipped to prove a hit with customers.

John Barker, head of mortgages at Co-operative Financial Services, said: "These changes make our fixed-rate range even more competitive against other fee-free deals in the market and we expect there will be a high level of demand."

The deal also applies to the three-year 5.94 per cent first-time buyer fixed-rate mortgage, the five-year 5.89 per cent fixed-rate and the ten-year 5.84 per cent fix.

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