The platform increases its SVR (standard variable rate) following the increase in the base rate of the Bank of England from 0.10% to 0.25%.
The bank’s SVR will drop from 4.34% to 4.49% effective today, Monday, December 20.
For existing customers, the change to 4.49% SVR will not come into effect until February 1, 2022.
The intermediary arm of The Co-operative Bank is also reducing rates on a selection of its non-SVR mortgage products by up to 0.30%.
Reduced rates include:
5 year fixed rate at 1.55% at 60% LTV with £ 0 fee and £ 250 cashback available
2 year fixed rate at 1.73% at 80% LTV with £ 0 fee and £ 250 cash back available
5 year fixed rate at 1.64% at 80% LTV with £ 1,499 fee and £ 250 cashback available
5 year fixed rate at 3.04% to 95% LTV with £ 0 fee and £ 1000 cash back available
The Co-operative Bank Mortgage Distribution Director said: “Although we saw the first Bank of England base rate hike in three years following the MPC meeting on 16 December, we continually revise our product line to ensure that we are offering the best, competitive rates and best value mortgage options for our broker partners. As a result, today we are announcing rate reductions on certain mortgages.
“We are also making changes to our higher LTV mortgages including increasing the cashback on 3 and 5 year fixed rate mortgages to 95% LTV with cashback now increased to £ 1,000 on these products, c is a great deal for first-time buyers looking for the right mortgage deal for their situation.