Co-op launches competitive fixed-rate mortgage

The Co-operative Bank has launched a new two-year fixed-rate mortgage at a rate similar to that of its best buy tracker mortgage.

Borrowers can take advantage of the fixed-rate deal, which comes with a rate of 5.24 per cent.

This matches the rate for its best buy tracker mortgage and is designed to offer borrowers real choice when it comes to choosing between a tracker and fixed rates deal.

"With the unpredictability of interest rates at the moment, we are now providing customers with the opportunity to choose between a fixed or tracker product at exactly the same initial rate," said John Barker, head of mortgages at Co-operative Financial Services.

"It is difficult to predict with any accuracy what will happen to interest rates over a two-year period, so customers will obviously have to make decisions based on their personal circumstances and their own attitude to risk and need for payment security.

"Customers who like to be certain of their monthly repayments will benefit from a fixed rate product, whereas people who believe there may be further interest rate cuts on the horizon may be more inclined to opt for a tracker," he added.

The majority of analysts believe that the base rate of interest will not be cut in March but will fall in the coming months.

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