The Co-Operative bank launches five year capped rate flexible mortgage

THE CO-OPERATIVE BANK LAUNCHES FIVE YEAR CAPPED RATE FLEXIBLE MORTGAGE The Co-operative Bank today (1 November) launched a five-year, capped rate, flexible mortgage. Borrowers will pay the Bank's standard rate of interest, which is currently 5.39 per cent, but with a guarantee that until 31 January 2007 it will not exceed 5.74 per cent, regardless of any increases in interest rates during that time. From 31 January 2007, there will be no penalty for early redemption. The capped rate mortgage is available to both customers and non- customers of the Bank, and for house purchase or re-mortgaging, with a maximum advance of 95 per cent of the property value. Interest is calculated on a daily basis, and there is flexibility of repayments, including up to 10 per cent reduction of the balance each year without penalty. As with The Co-operative Bank's existing flexible green mortgage, borrowers will get a free home energy rating report with their property valuation. This will cover the energy efficiency of the property, and identify ways in which it can be improved, therefore giving both financial and environmental benefits. Mick Firth, Deputy Chief Executive of The Co-operative Bank, said: "With our new capped rate mortgage, borrowers will benefit if interest rates go down, and for the next five years will have the piece of mind of knowing that if interest rates go up, the rate they are charged cannot increase above the cap of 5.74 per cent. The Bank returned to the mortgage market last year when we launched our flexible green mortgage. Our new competitive capped rate mortgage now provides an alternative, which we believe will be attractive to many borrowers." Anyone wanting further information about a high quality individual mortgage service with both financial and environmental benefits, can call The Co-operative Bank free on 08000 288 288 between 8am and 9pm, Monday to Friday, 9am to 5pm Saturday. Ends For further information, contact: 1 November 2001 Paul Lawler The Co-operative Bank Press Office Tel: 0161 829 5091 Fax: 0161 839 4220 e-mail: paul.lawler@co-operativebank.co.uk ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/31/20011031BIT00790/bit0001.doc http://www.waymaker.net/bitonline/2001/10/31/20011031BIT00790/bit0001.pdf