The Co-operative Bank is to introduce a new fixed-rate mortgage option this week, the lender has announced.
Beginning this Wednesday (January 14th), the bank will offer a five-year deal with an interest rate of 4.49 per cent for a loan-to-value of up to 60 per cent.
A £1,495 application fee will apply to customers, however those who are switching their mortgage in order to improve their debt management will be able to benefit from the ability to make both overpayments and underpayments, as well as taking payment holidays if necessary.
Head of mortgages at the lender Terry Jordan stated that the firm realises many borrowers are “struggling” in the current economic climate.
“This new mortgage offers customers the chance to fix in their mortgage payments at a low rate,” he explained, noting that it will give borrowers “peace of mind” that their payments will not change for the next five years.
Britannia mortgages recently announced changes to its fixed-rate deals, cutting interest by up to 0.65 per cent and introducing new five and ten-year options.
By Tom Musk