The Co-operative Bank has bucked the trend of lenders increasing mortgage rates in recent weeks by cutting the cost of its five-year fixed-rate deals by up to 90 basis points.
This move comes in a week when more lenders have announced rate rises on a number of their mortgages. On Tuesday, Yorkshire Building Society, Chelsea Building Society and Barnsley Building Society – all part of the Yorkshire group – confirmed that they would increase some of their tracker mortgage rates by between 10 and 20 basis points, while Northern Rock is pushing up the cost of a number of its fixed-rate deals.
Co-op’s reductions include a new competitive five-year fixed rate of 3.39 per cent for homeowners looking to borrow up to 75 per cent of a property’s value. It comes with a fee of £999.
The deal matches the best in the market and increases the choice of attractively priced five-year fixed-rate mortgages for borrowers with a deposit of at least 25 per cent. Yorkshire Building Society also has a five-year fix at 3.39 per cent, with a fee of £995.
However, for those looking to remortgage, Co-op’s deal could be the better option as it includes a free valuation and free legal costs, according to David Hollingworth of London & Country, the mortgage broker.