17 Dec

Bank cuts mortgage rate

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.

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