Cooperative Bank 90% LTV Fixed Rate Mortgage

by Peter Jacobs

A new set of deals has been launched by the Cooperative Bank and the Britannia Building society offering new fixed rate mortgages at 90% LTV. More and more products are coming back to the market place at higher than previously seen LTV (loan to value) and the new Cooperative Bank fixed rate mortgages have also some of the best rates in the market.

90% LTV product summary

There are six different products to choose from if you have a 10% deposit. With these high LTV products they are only available on repayment mortgages (not part and part or interest only) and the minimum household income has to be at least £20,000 per year.

Here are the range of products on offer :

  • 2 year fixed rate at 5.49% with an application fee of £999. Early redemption penalties (erp) for the first 2 years
  • 2 year fixed rate at 5.99% with no application fee and erps within the first 2 years
  • 5 year fixed rate at 6.09% with an application fee of £999 and erps within the first five years
  • 5 year fixed rate at 6.39% with no application fee and erps within the first five years
  • 3 year tracker mortgage with tracks the Bank of England base rate plus 3.99% with a £999 application fee and early redemption penalties within the first 3 years.

Once the deal period has finished on all of these mortgage products the rate will revert to the Cooperative Bank’s standard variable rate which is currently 4.24%. For many of these products you need to hold one of the Cooperative Bank’s banking products such as a current account or savings account.

Are the rates good value ?

Since the withdrawal of many products and the slump in the housing market many 100% and 90% LTV mortgage products were withdrawn from the market and it was difficult to get a first time buyer mortgage with a low deposit. Now some banks are slowly getting back into the market and these products from the Cooperative Bank and Britannia are probably just the beginning. The rates are higher than if you had a higher deposit and are competitive for other products in this range because simply there aren’t many around. Please get professional advice for your own circumstances.

Applying for these products

You can apply directly with the bank for these mortgages over the telephone as there is no online system available or alternative speak with your independent financial adviser or broker for more information.

Although the interest rates for these products are some of the cheapest for the high LTV and low deposits they are much higher than if you had a larger deposit to put down. The products are also available from the Britannia as they have merged with the Cooperative Bank.

For both establishments you can see exactly how much these mortgages will cost you because both have an online mortgage calculator on their websites where you can enter you house price and how much you want to borrow, the types of loan you are looking for and for how long and it will offer all the products in their database that match your requirements and provide you those details and the monthly repayment.



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