CFS boosts mortgage options
Borrowers will be able to fix and track different amounts of their home loan with no additional restrictions – meaning they can combine any proportion of the two mortgage products.
All Co-operative Financial Services (CFS) mortgages are available to combine, although customers must mix and match loans designed for their loan to value (LTV).
The move will allow borrowers to keep the flexibility of a tracker, while benefiting from the security of a fixed-rate at no extra cost.
James Hillon, function leader mortgages for The Co-operative Financial Services, said: "Many borrowers are unsure whether now is the time to fix their mortgage or if they should take a tracker rate product. The option to take out a split loan with only one application fee gives customers the flexibility to take advantage of the benefits that both products offer at no extra cost.
"We believe customers will find the opportunity to mix and match products increasingly attractive given current uncertainty around the future of interest rates."
Customers can mix and match products for different periods of time. For example, a three year tracker product and a five year fixed product could be combined.
The application fee charged on combined mix and match products will be the highest fee of both the chosen loans.
All tracker rates are set in relation to the base rate, so will rise in line with this, while the fixed rate portion will remain at the same level for the mortgage term.
Date: 14th, July, 2010
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