17
Dec
Bank cuts mortgage rate
The Co-operative Bank has revealed that it is to trim its standard
variable rate (SVR) for mortgage customers.
From January 1st the SVR will be 4.74 per cent, 0.5 per cent less
than the current figure.
Head of mortgages at the bank Terry Jordan commented that the
decision is designed to "balance" the differing needs of savers and
mortgage borrowers.
He added: "Our SVR remains very competitive against the market and
throughout the recent financial turmoil the Co-operative Bank has
managed to hold a position of financial strength."
The bank "essentially" funds its mortgage lending entirely from
customer deposits, meaning it does not have to resort to other
sources, Mr Jordan concluded.
Nationwide has also announced changes to its mortgage range.
As well as re-entering the tracker market with a new two-year
product, it is also raising its loan-to-value threshold for
existing customers who are moving home from 75 per cent to 95 per
cent.
