Co-op tracker mortgage boosts business

Thursday, 18, Jun 2009 01:23

The Co-operative Bank has reported a 75 per cent increase in new mortgage business following the launch of its three-year tracker loan.

At the end of May the mortgage had a rate of 2.39 per cent, which the Co-op said was below other lender's standard variable rates.

And the mortgage is still available for potential borrowers who are looking for loans of up to 75 per cent of their property's value.

Terry Jordan, head of mortgages at the Co-op, said: "We have really seen a surge in demand for our new tracker which offers a more generous loan-to-value (LTV) than most of our competitors' lowest priced products, at up to 75 per cent LTV."

The mortgage has a £995 application fee and comes with free standard legal and valuation fees for remortgages.

There is an early repayment charge and the mortgage is for loans of no more than £1 million. After three years the interest rate reverts to the bank's standard variable rate which is currently 4.24 per cent.