Tracking Success - The Co-operative Bank 3 Year Tracker Leads to 75% Uplift in Mortgage sales

Following the recent launch of a new market leading 3 year tracker mortgage

Online PR News – 20-June-2009 – – June 2009 - Following the recent launch of a new market leading 3 year tracker mortgage, (2.39%* 27.05.09)The Co-operative Bank is reminding customers looking to make the most of low interest rates, to act now if they want to take advantage of some of the lowest rates available.

Since launching the new 3 year tracker, The Co-operative Bank has secured many new mortgages applications, and seen a 75% uplift in new mortgage business. The product is proving particularly popular as it is below other lender’s standard variable rates. This however, is just part of The Co-operative Bank’s full commitment to mortgages ,we are open for business and will continue to issue competitive products though the year.

Terry Jordan, Head of Mortgages at The Co-operative Bank, comments: “We have really seen a surge in demand for our new tracker which offers a more generous LTV than most of our competitors’ lowest priced products, at up to 75% LTV. This is a clear statement that we remain fully committed to providing a full range of mortgage products and with base interest rates at a historic low, this new mortgage now offers customers the best rate in the market.

This ongoing commitment to provide value to customers has been recognised by us being named Which? Personal Finance provider of the year” and as an additional benefit Co-operative Bank mortgage customers who are also Co-operative members earn a dividend; in 2008 a £150,000 mortgage earned £150.

All of The Co-operative Bank mortgages are green mortgages, with an annual donation to Climate Care to offset around a quarter of an average home's carbon dioxide emissions each year for the lifetime of the mortgage.

*Full details as follows*
- 3 Year Tracker Mortgage
- 2.39% rate for first 3 years until 30.09.12 - reverts to Standard Variable Rate (currently 4.24%) after initial 3 year period
- £995 application fee
- Maximum 75% LTV
- £1m maximum loan size
- Free standard legal and basic valuation fees for remortgages only when Bank’s recommended solicitors and surveyors used.
- Early repayment charges apply until 30.09.12
- Overall cost for comparison 3.9%
- Product available through all channels (except brokers)

CML announcement (21.05.09)

Gross mortgage lending declined to an estimated £10.4 billion in April, down 9% from £11.4 billion in March and 60% from £26. billion in April 2008, according to new data from the Council of Mortgage Lenders.

The Co-operative Financial Services is part of The Co-operative Group, which is the world’s largest consumer co-operative with over 3 million members. CFS currently has 5.5m customers and employs over 8,000 staff. It has 110 retail and corporate branches/centres and 1,000 face to face financial advisers. It has £38bn of assets under management across its retail and corporate business areas. Including the Co-Operative Insurance, leading Home Insurance and Car insurance providers.

The Co-operative Bank is authorised and regulated by the Financial Services Authority (No.. 121885), subscribes to the Banking Code, is a member of the Financial Ombudsman Service and is licensed by the Office of Fair Trading (No. 006110).

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