Co-operative Bank launches new fixed rate mortgage

The Co-operative Bank has today (December 7th) launched a new two-year fixed rate mortgage.

Introduced as part of the lender's range of green mortgages, the product offers a fixed rate of 5.39 per cent until February 28, 2010, with a fee of £999.

The mortgage is available on a maximum of 95 per cent loan-to-value, while it also offers the flexibility for both over and underpayments.

As part of its service, the bank guarantees it will not impose a higher lending charge on borrowers, claiming this can cost as much home-buyers up to £2,000 extra when purchasing a property.

Commenting on the new product, John Barker, head of mortgages at Co-operative Financial Services, said: "This new mortgage offers customers a very competitive rate, whilst at the same time providing them with reassurance that the rate will remain fixed at this level for the first two years."

Under the Co-operative Bank's green mortgage scheme, the lender makes an annual donationto carbon-offset provider Climate Care for the duration of the mortgage, allowing them to offset around a quarter of the average home's carbon emissions for the mortgage's lifetime.

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