Co-op pulls two-year mortgage range

The Co-operative Bank has decided to withdraw its two-year mortgage range on a temporary basis from close of business on 3 April.

It said the decision was based on a desire to create long-term customer relationships and to not compromise its customer service by chasing business volume at any cost.

John Barker, head of mortgages at Co-operative Bank, said: “We are fully committed to providing quality mortgage products in the current economic climate and developing strong and growing relationships with both new and existing customers.

“Our commitment to the mortgage market and our customers is underpinned by a strong funding model, which means our mortgages are essentially 100% funded by customer deposits. Against this backdrop we expect to grow our market share in 2008.

“We have recently provided a range of competitive mortgage deals, which have included a number of “best buy” two-year mortgages. This has led to unprecedented levels of customer interest and demand, which has been fuelled further by the recent actions of other lenders to reprice and withdraw their products.

“However we will still continue to offer an excellent range of competitively priced three, five, 10 and 25-year mortgages to both new and existing customers. These products will be developed further, as they fit strongly with our strategy of creating long-term customer relationships.”