The Co-operative cuts mortgage rates.
To help first time buyers and those with a smaller deposits, mortgage rates have been cut by the Co-operative.
This is good news for borrowers as most of the mortgage rate reductions which have been made since the release of the funding for lending scheme, have been to higher deposit borrowers. According to Moneyfacts there are currently 476 products on offer for 60% LTV compared to 292 on offer for 90% LTV.
The Co-op is attempting to re-dress this balance with reduced rates for smaller deposit buyers by cutting both its 3 and 5 year fixed rates.
The lender’s new deals include a 3 year fix for 75% LTV at 3.89% and a 5 year fix for 85% LTV at 4.79%. With both new products there is no arrangement fee.
In total the Co-op has reduced over 20 products across its range, for both new purchase and remortgage.
So far the lender has advised that it has lent around £1 billion in mortgages during the first half of 2012, and it anticipates that it will lend an additional £360 million to first time buyers by the end of the year.
A spokesperson for the lender commented advising that it welcomes the funding for lending scheme. Cheaper funding means more competitive mortgage rates which could help many more to buy a home.
If you are looking for a mortgage you are advised to contact independent 'whole of market' broker Deal Direct. We have access to the entire mortgage market and can source the most competitive rates on offer.
Contact Deal Direct for a personalised quote.
