The Co-operative Bank has launched a new 2.79% five-year fixed rate mortgage at 60% LTV.
“Five year fixed-rate mortgages have hit a new ‘low’ with the launch of Co-op’s new market-leading loan, which wins hands down on both fee and rate,” said Michael Ossei, personal finance spokesperson at uSwitch.com.
“The latest addition to Co-op’s mortgage range could prove a hit for homeowners looking to lock-in and secure an attractive rate. With an arrangement fee of just £999 and a low rate of 2.79%, this new mortgage will offer peace of mind although some may still view the fee as a hefty price tag.
“And at 60% LTV, this mortgage could still be out of reach for many, particularly first-time buyers who are unlikely to be able to scrape together such a hefty deposit.
“The next best option for homeowners who can only muster a small deposit could be the Yorkshire Building Society’s five year fix. At 3.04%, it only requires homeowners to borrow up to 75% of the property’s value. Based on the average house price of £248,958, that is a difference of £99,583 deposit with Co-op and £62,240 deposit with the Yorkshire Building Society.
“Borrowers will now be hoping that the Co-op’s cut rate deal will encourage other lenders to follow suit, giving those looking for more security more choice.”