Co-op: 4.49% fixed-rate green mortgage

Tuesday, 13 January 2009 12:00

The Co-operative Bank is unveiling a five-year fixed-rate mortgage with a rate of 4.49 per cent.

The mortgage, which is available for loans of up to 60 per cent of the property's value, comes with a £1,495 application fee and free legal and basic valuation fees for remortgages.

Early repayment charges will apply for the entire five years the mortgage runs. However, there are flexible features including an overpayment and underpayment facility.

The Co-op will also allow borrowers to take payment holidays for home purchases and remortgages.

And "green" borrowers will be pleased to learn Co-op will make an annual donation to Climate Care, a charity set-up to tackle global warming, for the duration of the mortgage.

Terry Jordan, head of mortgages at the bank said: "With base interest rates reaching an historic low and rates across the industry falling, this new mortgage offers customers the chance to fix in their mortgage payments at a low rate and have peace of mind that their payments will remain unchanged at this level for five years."

The mortgage is launched tomorrow.

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