Co-op Bank targets first-time buyers with new mortgage range

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Platform, the intermediary arm of The Co-operative Bank, will start offering 95 per cent LTV mortgages from September 3.

 This mortgage range is available for residential purchases, and are offered on two, three or five-year fixed-rate terms.

All of the 95 per cent mortgage offer two fee options. Borrowers can select a fee-free option, or chose a lower rate with a £999 product fee. The maximum loan across the range at launch is £350,000.

These mortgages also offer £500 cashback, and the first standard valuation will be free.

The five-year fixed-rate option charges a rate of 3.49 per cent, with a £999 product fee. The fee-free option charges a rate of 3.74 per cent.

At the same time Platform is also reducing rates on its two and five-year fixes at lower LTV brackets.

Its two-year fixes will be reduced by 0.1 per cent at 60 to 75 per cent LTV. This means a two-year fix, at 60 per cent LTV, will now charge a rate of 1.94 per cent – with no product fee.

Its five-year fixes have been reduced by 0.05 per cent at the same LTV bracket.

The Co-operative Bank’s head of mortgages and insurance Paul Norcott says: “We’re pleased to be able to continue to support first-time buyers and those who are finding it difficult to save a bigger deposit.”

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