New 3-year tracker and capped rate mortgages launched

Britannia and The Co-operative Bank are to jointly launch a new three-year tracker and a five-year capped rate mortgage.

The banks, which are making the deals available from Friday March 19th, have described the mortgage deals as "market-leading".

A rate of 2.49 per cent and an arrangement fee of £999 is being offered on the three-year deal, while the five-year product will offer additional protection against future base rate rises.

Cheap mortgages have been available to variable rate customers over the last 12 months while the Bank of England has held interest rates at 0.5 per cent.

However, any sustained economic recovery is sure to see the Bank's Monetary Policy Committee increase rates once again.

John Hughes, business leader for retail products at Britannia, said the "competitively-priced" variable rate mortgages offer customers "an opportunity to take advantage of the current low interest rate environment".

He added: "The five-year capped product is innovative in the current mortgage market, offering customers the best of both worlds - a low current rate and also the reassurance that their payments won't go above a certain rate."

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2010-03-17 12:10:59 © Moneyextra.com