Co-op Launches a Good Deal for First Time Buyers

by Mark Johnston

The Co-op Bank is again living up to its tag line “good with money” with its fixed rate offerings that have won them the prestigious moneywise best lender for fixed rate mortgage award.  With their fixed rate mortgage you know exactly what your monthly repayments will be so budgeting shouldn’t be a problem. The Co-op Bank are currently offering a range of fixed rate mortgage periods, from two to a massive ten years for those of you that like to plan ahead and be comfortable with how what your monthly outgoings will be each month. The rates range from 2.95% for two years to 5.49% for the ten year version.

The bank is offering struggling first time buyers a helping hand by cutting its rates on much sort after 90% mortgages which have before pretty rare since the financial crisis.

The Co-op and Britannia have cut the rates on their first time buyers mortgages from 6.09% to 5.69% in a bid to provide more help to struggling buyers. The rate reduction has made their 90% loan to value mortgage one of the best deals out there. As well as a small deposit and a competitive rate of interest, the bank is also offering the mortgage with the added benefit of no arrangement fees which will go a long way to tempt a cash strapped first time buyer market.

Head of Mortgages for The Co-operative Financial Services, James Hillon said: “We recognise times are still difficult for those looking to get onto the property ladder so the rate reduction on our two year fixed product will provide a welcome boost for first time buyers. Customers, who want to take out one of these mortgages will also have the additional flexibility of a range of direct channels, including internet, telephone and branch as well as the added benefits of our high levels of customer service.”

Those with larger deposits of up to 25% are not left out either, the bank as a solid range that offers a good deal for everyone.

Their two year fixed rate of 2.95% (AER 4.3%) does have an application fee of £999, if purse strings are tight you can roll this up into the fixed rate. The two year fixed rate with no application fee is 4.19% (AER 4.4%) both offers revert back to the standard variable rate after the fixed rate period which is currently 4.24%.

The Co-op Banks 3 year fixed rate is currently 4.19% (AER 4.4%) with a £999 application fee, the fee free version comes in at 4.69% (AER 4.4%). For those wanting a more medium term fixed rate period the 5 year fixed rate mortgage compares one of the best when looking at the overall cost comparison at 3.99% (4.3% AER) again with a fee of £999 and fee free at 4.79% (4.5% AER).

Finally the 10 year fixed rate mortgage locks you in for a much longer period of time and doesn’t compare well on AER but does give those of you that prefer more security in regards to your monthly outgoings. A 10 year fixed are mortgage with a fee of £999 is being offered at 5.29% (5.1% AER) with the fee free version being offered at 5.49% (5.2%AER).Remember all fixed rate mortgages revert to the Co-Op Banks variable rate which is 4.24% at the end of the fixed period.

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