A five-year fixed rate mortgage at a rate of 2.79 per cent has been launched by The Co-operative Bank at 60 per cent loan to value, while those with a smaller deposit are advised to look to Yorkshire Building Society’s five year fix.
Michael Ossei, personal finance expert at uSwitch.com, says: “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 per cent, this new mortgage will offer peace of mind although some may still view the fee as a hefty price tag.
“And at 60 per cent 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 per cent, it only requires homeowners to borrow up to 75 per cent 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.”
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