A new mortgage was recently unveiled by The Co-operative Bank that offers a loan to value (LTV) of up to 90% and is specifically aimed at the first time buyer.

The Co-operative Bank and its subsidiary company Britannia have launched a two year fixed rate mortgage deal requiring just a 10% deposit and the mortgage is available now.

With an initial introductory interest rate of 5.09% and a low application fee of £999, the mortgage is a welcome addition to the first time buyer market. Buyers can alternatively opt for no application fee at all if they choose a higher initial interest rate of 6.09%.

The Head of Financial Services mortgages at The Co-operative Bank, James Hillon, commented on the new product in an article on the Fair Investment website:

“We are keen to continue to help support mortgage customers and the introduction of the new two year products provides a welcome boost for first time buyers and home movers.

“Customers who want to take out one of these mortgages, will also have the additional flexibility of a range of direct channels, including internet, telephone and branch as well as the added benefits of our high levels of customer service.”

For first time buyers, the mortgage market has been much more difficult since the onset of the recession and the introduction of new products such as these can only stimulate the market’s recovery further.

A CeMAP-qualified mortgage advisor will be able to help any potential buyer or homeowner looking for a mortgage to find the most suitable product for their circumstances.

One Response

  1. It’s great to see some of the high street lenders responding to the needs of first-time buyers but I’m sure the fee free rate of 6.09% could be improved upon.

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