New 3 year tracker mortgage from Co-op Bank

The Co-op Bank has launched a leading 3 year tracker mortgage with loan to value (LTV) up to 75%.

The 3 year tracker mortgage has a rate of Bank of England base rate + 1.89%, making the current rate 2.39%.

There is a £995 fee but if the Co-op Bank recommended solicitors and surveyors are used there are no standard and basic valuation fees.

There are early repayment fees applicable until 30 September 2012, although subject to terms and conditions there is the facility to make overpayments, underpayments and take payment holidays.

Head of Mortgages at the Co-op Bank, Terry Jordan, said ‘We remain fully committed to providing a full range of products and mortgages and with base interest rates at a historic low, this new mortgage now offers customers the best tracker rate in the market.’

Certainly, according to Co-op information, this new 3 year tracker mortgage sits above a number of other mortgages offered by other providers, including

• HSBC 2 year discount, rate 2.49% with 60% LTV and £249 fee
• Alliance & Leicester 2 year tracker, rate 2.79% with 60% LTV and 2% fee
• Halifax (part of Lloyds Banking Group) 3 year tracker, rate 3.26% with 60% LTV and £995 fee
• Nationwide 3 year, rate 3.27% with 60% LTV and £995 fee