The Co-op announce their mortgage interest rates are to rise.
Co-op mortgage interest rates are the latest to rise and it is estimated that over 50,0000 customers will be affected. The bank announced that its standard variable rate will rise by 0.5% to 4.74%. effective from the 01 May this year.
The announcement follows other standard variable rate rises from the Halifax, RBS-NatWest, Clydesdale and Yorkshire banks with higher cost of funding and a weak economy said to be the main reasons for the decisions.
All the banks and building societies that have increased their standard variable rates in the past few weeks have done so against the background of a historically low Bank of England base rate of 0.5%.
The Co-op Bank are reported to have said that customers with a standard variable rate may be concerned about the change but they will be offering alternative options. On average monthly payments could increase by around £15 but those with larger loans could see increases of over £200 a year.
The bank will be offering a new product for customers with a higher loan to value who are looking for an alternative. The new deal will offer fixed mortgage interest rates for five years at the same rate customers currently pay.
The Co-op Bank also offers other products including fixed rate and tracker mortgages and there are many other opportunities to make savings by moving from a raised standard variable rate. Call Deal Direct if your mortgage interest rates are set to rise, we can suggest alternative products to save you money.
