UK-based Co-operative Bank is launching a new range of fixed-rate mortgages, which, according to the lender, provide UK borrowers with good value, while allowing them to make a positive contribution to the environment.
<p>Co-operative Bank commented that first-time buyers, those moving house and those remortgaging their house would benefit from a number of environmental features the mortgage product offers, including a free home energy report with their property valuation, which assesses the energy efficiency of the property and identifies ways in which it can be improved.<br /><br />The lender added that, for the duration of the mortgage, it would make an annual donation to Climate Care in order to help tackle global warming. Houses are one of the largest sources of carbon dioxide emissions in the UK, but Co-operative Bank has said that, using its donations, Climate Care would be able to offset around one quarter of an average home's carbon dioxide emissions each year for the lifetime of the mortgage.<br /><br />John Barker, head of mortgages at the Co-operative Bank, said: With the current climate of uncertainty surrounding base rate changes, these new products offer customers an excellent rate and peace of mind that their rate will remain fixed at this level for the initial period of the loan.<br /><br />Co-operative Bank added that it does not impose higher lending charges on borrowers who wish to borrow more than 95% of the value of the property. The lender said that these charges could potentially cost UK consumers up to an additional GBP2,000 when buying a home.</p>