by Mark Johnston
The Co-operative bank has been demonstrating that it’s a responsible lender by suggesting that its customers pay capital off their mortgage. Since the Bank of England reduced its rates down to the historic 0.5% levels, many borrowers have had the luxury of greatly reduced monthly repayments. Prudent borrowers have used this opportunity to reduce the outstanding capital on their mortgage with the additional spare cash. Whilst others have chosen to spend the spare cash elsewhere.
The Co-operative bank prides itself as a ethical bank and a responsible lender. As such, they have decided to make their customers aware of the benefits of making additional overpayments on their mortgage. They have also facilitated this by allowing their customers to make up to 50% without incurring penalty fees which many other banks and building societies charge.
The banks head of mortgage, James Hillon wants to promote the benefits of making these extra payments and highlight how this can help in the long term financially. Mr Hillon said: “With interest rates continuing to remain at their historic low level, our data shows that customers are increasingly looking to take the opportunity to pay off more of their mortgages.”
At the end of last year the Co-op Bank demonstrated that it was 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.”
Story link - Sound Mortgage Advice From The Co-op
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