Co-op cuts mortgage fees

| November 10, 2011 | 0 Comments
Co-op cuts mortgage fees

The Co-operative Banking Group has announced that rates on its five-year fixed rate mortgages are being reduced by up to 0.90 per cent.

The group is also withdrawing the £999 arrangement fee on its five-year products available exclusively to current account customers.

Following the changes the group offers five-year fixed rates mortgages with rates ranging from 3.39 to 5.99 per cent APR, depending upon levels of equity for borrowers.

The rate for customers with a 25% deposit is being reduced by 0.8 per cent to 3.39 per cent.

The latest cut in fees, which come into effect today, follow the bank’s October re-launch of its fixed rate mortgage range, when rates were reduced by up to 0.6 per cent.

James Hillon, the bank’s head of mortgages said: “With rising living costs leaving many families with less cash to spare each month, our five-year fix products offer a great option for those wanting the re-assurance of set monthly repayments.”

It was also announced today that the Co-op has submitted a second-round bid for the network of retail branches being sold by Lloyds Banking Group.

Lloyds is required to sell the branches by the European Commission, following its bailout by the UK government during the credit crunch.

The Co-op is buying the retail network, which comprises 632 branches and £36 billion of deposits, as part of its strategy to expand its relationship banking business in the UK.

The financial details of the deal have not yet been revealed, but a decision on the sale is expected by the end of the year.

It is believed that only other bid, valued at around £1.5 billion, came from NBNK, a company established in 2010 with the aim of forming a UK retail bank.

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