Apr 3, 2012
Following changing conditions in the mortgage market and the increased cost of funding, The Co-operative Bank will be raising its standard variable mortgage rate (SVR) by 0.5% (from 4.24% to 4.74%) from 1st May 2012.
Commenting on the decision, the Co-Operative Bank said: “When changes are made that impact our customers, we do seek to ensure that wherever possible we provide solutions for them. We do recognise that some of our customers who have a higher loan to value (LTV) on their mortgage may be particularly concerned about this change and we have specifically put measures in place to make alternative options available for these customers.
The average increase seen by our SVR customers will be £15 per month. Our SVR mortgages continue to offer customers a range of features and benefits, including the ability to make unlimited overpayments and to switch to another mortgage deal with us without penalty. These products are increasingly popular due to the flexibility they afford and the uncertainty about the direction of interest rates. We also have a range of other products available for customers including fixed rate and tracker products to suit a variety of borrowing needs.
In addition to the existing products across our wider mortgage product range, we will be making a new product available specifically for existing customers with a higher loan to value (90% or above) who may want to find an alternative arrangement. This will be a five year fixed rate mortgage aimed at customers who are looking for longer term stability. This will be available at the same rate as they currently pay, with no upfront fees or charges, offering these customers the option to continue paying the same monthly payment for the next five years. “