New two-year tracker mortgage from The Co-operative Bank

The Co-operative Bank has just launched a new two-year tracker mortgage.

Set at 0.61% below the Bank of England's base rate for the first two years, the mortgage package includes free legal work, and free valuations for remortgages. The arrangement fee for the mortgage is £999, but despite being £400 more than Tesco's two-year tracker, with an initial APR of 5.14% the Co-operative tracker is considered to be the cheapest currently on offer (according to The Observer, Sunday 12th Aug).

John Baker, head of mortgages at Co-operative Financial Services believes this new tracker mortgages not only provides customers with a very competitive rate, but also offers peace-of-mind with the rate remaining below the base rate for the initial loan period.