Co-operative Bank Mortgage

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There are no tables for this criteria

There are no tables for this criteria

There are no tables for this criteria

There are no tables for this criteria

There are no tables for this criteria

There are no tables for this criteria

There are no tables for this criteria

There are no tables for this criteria

There are no tables for this criteria

Buying a property can be an expensive exercise and it is important that you are aware of all the costs that come into play when buying your home.

The costs relating to your mortgage will be set out clearly by the lender in what is known as the “Keyfacts” document provided to you.

These costs may include:

  • Arrangement Fee – Charged by the lender to cover the administration costs of processing your mortgage. This will vary from deal to deal. You normally have the option of adding this fee to your mortgage but this will increase your cost of borrowing over the mortgage term.
  • Mortgage broker Fee – If you have used a mortgage broker to help arrange your mortgage for you then a fee may be charged which will be outlined in your keyfacts document.
  • Mortgage Account Fee – Applied by the lender at outset when you first take out your mortgage to cover the set up and termination costs of your mortgage.
  • Valuation Fee – Charged by the lender to value your property in assessing the value for mortgage purposes.
  • Re-inspection fees – If a lender has required you to make agreed repairs to the property a re-inspection may be required
  • Higher lending charge – If you are borrowing a high loan to value the lender may decide they wish to insure the possibility that you may need to sell your home and this results in a loss.
  • Early redemption charges – If you pay off part or all of your mortgage earlier than expected the lender may charge you a fee – this will be covered in your keyfacts document.
  • Mortgage exit fee – Paid to your lender when you repay your mortgage.
  • Insurance costs – as part of your mortgage you may be encouraged to take out insurance either by a broker or the lender to cover buildings insurance and other optional insurance such as mortgage life insurance.

  1. If you are unsure of your mortgage options, seek mortgage advice from a FCA regulated independent mortgage broker
  2. Maximise the deposit you can put down on your property to benefit from the most competitive Mortgage interest deals.
  3. Read the Lender Mortgage key facts document carefully to understand the costs being applied by the lender.
  4. Ensure you are comfortable that mortgage repayments (whether repayment or interest only) fall within your budget.
  5. Remember that mortgage discounts are temporary, and borrowing rates may increase when the discount period ends.
  6. If you are remortgaging, ask your current lender what deal they can offer you, as well as shop around.
  7. If your lender’s property valuation is too low, ask them to reconsider and provide supporting evidence from the sale price of other properties in your area.
  8. For interest only mortgages ensure that you plan carefully how to pay off your mortgage and check at regular intervals that your repayment strategy is on track.
  9. At the time of writing interest rates are at record lows. While borrowing is cheap now, this situation may change, so factor in a rise in interest rates into your budgeting calculations.
  10. Consider mortgage unemployment insurance in the event that you lose your job. This may provide valuable breathing space in covering mortgage repayments while you look for a new job.

It is very important that when considering a mortgage you work out how much you can afford.

While there is a greater onus on mortgage lenders to lend responsibly you will also need to consider what level of borrowing is appropriate for your circumstances.

In simple terms lenders will base how much you can borrow on a multiple of your income (joint income for couples). However there are a number of factors that will determine what you can borrow from a mortgage company.

Mortgage lenders are required to apply strict rules to what they can lend to you based on your personal circumstances. In assessing affordability lenders will not only look at your income but also your outgoings e.g. monthly household bills. Lenders will look at your bank statements typically over the last 3 months to determine whether you can afford the mortgage you are looking for.

Many mortgage deals have initial periods where preferential terms are offered and borrowing costs are lower than normal – when this discounted period ends make sure you can afford any reasonable increase that may kick in. In assessing affordability lenders will take into account your income and outgoings and your current employment history. In calculating disposable income your total income will be taken into account less other debts you may have and living expenses.

The lender considering your mortgage application will have their own method of assessing affordability but it makes sense to do your own budgeting calculations to ensure the monthly repayment requirement is well within your budget.

In calculating how much you can borrow the lender will apply a maximum amount you can borrow called the loan to value of the property (LTV). E.g. If you are a first time buyer the lender may stipulate a LTV of 95% which means they are prepared to lend up to 95% of the value of the property (this will be assessed by the mortgage company’s own appointed surveyor). In this scenario the first time buyer would be required to put down at least 5% deposit towards the property purchase. The mortgage rate deals offered by a lender will be affected by the level of deposit that can be put down.

Generally speaking the higher the deposit that can be put down the better the mortgage rate can be achieved.

See how much you can borrow on a mortgage »

Compare Features and Benefits of Coop Mortgages

Some of the features and benefits of Cooperative Bank Mortgages include:

  • Free standard valuation on properties up to the value of £500,000 is included with selected co-operative mortgage deals when you use a surveyor who has been approved by the Cooperative bank
  • Fee free standard remortgage conveyancing and valuation package available on selected remortgage deals
  • Some Cooperative Bank mortgage products are available with no booking fees or application fees
  • Portable mortgages – if you move house you can transfer your mortgage to another property, subject to terms and conditions.


About Co-operative Bank mortgages

The Co-operative Bank was originally founded in 1844 as the Rochdale Pioneers Society. The Co-Operative Bank as we know it today was set up in 1872 and offers a range of new mortgage deals, as well as administering those held by former Britannia customers. The Co-operative Bank mortgage calculator could help you find the best co-op mortgage deal for you.


Choosing the right mortgage for you

If you are struggling to locate the best deal for your circumstances, our independent mortgage team could help.

For more information on the Co-operative Bank mortgage range, check out the rates in the table above, and to compare Co-operative mortgages with other leading providers, fill in our quick enquiry form for free impartial advice and no obligation quotes or call our independent mortgage team on 0117 332 6063.

  • Option to overpay up to 10% of your outstanding mortgage balance annually
  • A dedicated mortgage team will process your application efficiently from start to finish
  • Up to 90% loan-to-value mortgages available for first time buyers, with no arrangement fee or standard valuation fee
  • Free mortgage protection advice
  • Fixed rate mortgages – if you are concerned about interest rate fluctuations in the future, then a fixed rate mortgage deal allows you to guarantee that your monthly payments will stay the same for the duration of the fixed term. Fixed rate mortgage deals from the Co-operative Bank are available from two to five years’ duration.
  • Lifetime tracker mortgages – these mortgages rise and fall along with the Bank of England Base Rate and are available at up to 75% loan to value (LTV).
  • Compare 100s of mortgages
  • Get impartial information and advice
  • Find the best mortgage deal for you