1st May 2015
In a further race to the bottom for mortgage rates, The Co-operative Bank has launched the UK’s lowest two-year fixed rate deal.
The new deal is fixed at 1.09% until 30 June 2017 for mortgages up to 60% loan-to-value and is available to new and existing Co-op Bank customers. There is an arrangement fee of £1,499 for those taking out the mortgage.
Stuart Beattie, head of mortgages at Co-op Bank, said: ‘With rates at record lows, it’s a great time for customers to consider taking out a fixed rate product.’
Charlotte Nelson of comparison site Moneyfacts.co.uk said the introduction of this rate means there is no better time ‘for borrowers to fix their mortgage and secure low monthly payments for a significant period of time’.
For those with less equity in their home, the bank has also launched its lowest ever 90% loan-to-value loan, fixed at 2.64% for two years. There is also a three-year fixed rate deal for those with 40% equity fixed at 1.89%. All these deals come with an arrangement fee of £1,499.
The Co-op launch comes a day after First Direct began to offer a best buy three-year fixed rate deal at 1.68% and an arrangement fee of £1,450. Customers need a deposit of 35% to take advantage of the deal.