by Mark Johnston
A good range of fixed rate mortgage products can be found at the cooperative bank in the UK up to 10 years in total if you want to fixed your interest rates for this length of time. The Co-op Bank might well be 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 Co-Op Banks LTV is currently at 75% so its in line with what other UK lenders are offering although mortgages requiring smaller deposits are available if you shop around. We’ve found some great deals so make sure you take a look in our mortgage news before you make any final decisions.
The two year fixed rate of 2.95% (AER 4.3%) does have an application fee of £999, if purse stings 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.
The Co-Op bank seem to have all options covered in terms of their fixed are offerings, from fee and fee free options to the length of time you would like to be tied in. You need to make sure that you plan ahead because early repayment fees are chargeable for the full period and the Co-Op bank charge a £140 exit fee. That said the Co-Cop Bank’s mortgages are portable so if you move house before your term has finished you can simply take your current mortgage to your new home.
If you want to know more why not visit them at www.co-operativebank.co.uk as see if you agree with them that they are ‘good with month’.
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