Ten-year fixed rate mortgage from the Co-operative Bank
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The Co-operative Bank has launched a ten-year fixed rate mortgage, with an interest rate of 5.69% until April 30 2012.
It offers borrowers flexibility in repayments, plus ecologically friendly features. It is available for house purchase and for remortgaging, with a maximum advance of 95% LTV. For remortgages, the Bank will pay legal and valuation fees. Interest is calculated on a daily basis.
Borrowers can create a 'flexible fund', which can then be used to pay off up to 5% of the mortgage balance each year without penalty. Alternatively, borrowers can withdraw all or some of the fund at anytime, or use it to take a repayment holiday.
House purchasers will get a free home energy rating report with their property valuation. This covers the energy efficiency of the property, and identifies ways in which it can be improved, therefore giving both financial and environmental benefits.
For the duration of the mortgage, the Bank will also make an annual donation to Climate Care to help tackle global warming. This scheme was developed after extensive consultation with the environmental community, including WWF and Forum for the Future. Houses are one of the largest sources of carbon dioxide emissions in the UK and, by using the Bank's annual donation on reforestation, Climate Care will be able to offset around one quarter of an average home's carbon dioxide emission each yearfor the duration of the mortgage.
Mick Firth, deputy chief executive of The Co-operative Bank, says: "With interest rates at their current low levels, it is a good time for many borrowers to consider a fixed rate mortgage. With our new 10-year fixed rate mortgage, borrowers have the peace of mind of knowing that, however much interest rates may rise between now and 2012, the amount they are paying will not change."
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