According to the lender, two-year fixed rates at 95% LTV now start at 3.14% with a £999 fee or 3.39% with a no fee. Three-year fixes are available at 3.24% with a £999 fee or 3.54% fee-free, and five-year fixed rates start at 3.49% or 3.64% with no fee.
All 95% LTV rates come with £500 cashback and a free standard valuation for purchases.
Paul Norcott, head of mortgages and insurance at The Co-operative Bank, said: “We continue to offer competitive deals for first-time buyers. By lowering the interest rates on our 95% LTV mortgages we are offering our broker partners good value mortgage products when looking for a higher LTV mortgage for their clients, that will enable them to purchase their first home.
We’re also committed to act on broker feedback which is why we’ve made the change to our policy on builders’ incentives. We’re now able to accept them up to 5% of the purchase price of new build properties and we also continue to offer a competitive range of Help to Buy mortgages to further aid those looking to buy their ideal newly built home.”
