Green fixed rate mortgage from the Co-Operative Bank

GREEN FIXED RATE MORTGAGE FROM THE CO-OPERATIVE BANK The Co-operative Bank today (12 February) launched a fixed rate mortgage, with an interest rate fixed at 5.39 per cent until 30 April 2005. It offers borrowers flexibility in repayments, plus ecologically friendly features. The fixed rate mortgage is available for house purchase and for re- mortgaging, with a maximum advance of 95 per cent of the property value. For re-mortgages, the Bank will pay legal and valuation fees. Interest on the mortgage is calculated on a daily basis, rather than by the traditional annual method. The new mortgage provides considerable repayment flexibility. Borrowers can create a 'flexible fund', which can then be used to pay off up to 10 per cent of the mortgage balance each year without penalty, therefore reducing the total amount of interest paid. Alternatively, borrowers can withdraw all or some of the fund at anytime, or use it to take a repayment holiday. The mortgage has a number of positive environmental features. 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 year for the duration of the mortgage. Mick Firth, Deputy Chief Executive of The Co-operative Bank, said: "With our new fixed rate mortgage, borrowers have the peace of mind that however much interest rates may rise over the next three years, the amount they are paying will not change. "The Bank returned to the mortgage market in 2000 when we launched our flexible mortgage and last year we introduced our capped rate flexible mortgage. Our new fixed rate mortgage now provides a further option, which we believe will be attractive to many borrowers." Anyone wanting further information about a high quality mortgage service with both financial and environmental benefits, should call The Co- operative Bank free on 08000 288 288 between 8 am and 9 pm, Monday to Friday, 9 am to 5 pm Saturday. For further information, contact: Paul Lawler The Co-operative Bank Press Office Tel: 0161 829 5091 Fax: 0161 839 4220 e-mail: paul.lawler@co-operativebank.co.uk 12 February 2002 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/02/12/20020212BIT01170/bit0003.DOC http://www.waymaker.net/bitonline/2002/02/12/20020212BIT01170/bit0003.pdf