New Co-op mortgage launched for FTBs

Date:Thursday 30th April 2009
Author: Max Freedman

The Co-operative Bank has launched a new mortgage product aimed at first-time buyers (FTBs), it has emerged.

Property buyers who fulfil the necessary criteria will be able to use a family member's income to guarantee the loan, the Daily Mail reports.

The deal is a three-year, fixed-rate product charged at 5.99 per cent.

In order to secure the loan, buyers must have a deposit worth 15 per cent of the value of the home and there is no arrangement fee.

According to the Daily Mail, the mortgage is aimed at FTBs who lack long credit histories and the Co-op still expects borrowers to have a steady income themselves.

The bank also recently announced another new home loan aimed at FTBs, which is also a three-year, fixed-rate product. This one is charged at five per cent.

Launching the product, Terry Jordan, head of mortgages at the Co-operative Bank, stated: "We recognise that in the current economic climate many people are struggling and we remain fully committed to providing affordable mortgages."