Co-op Bank ditches direct-to-consumer mortgage offering
Co-op Bank is to close its doors to direct mortgage borrowers from Friday 9 February, as it looks to bolster mortgage activity through its broker arm – Platform.
This means new Co-op Bank mortgage deals will only be available through intermediaries.
However, it confirms that all mortgage in principles, decision in principles and applications in process with the bank before Friday will be honoured and completed in line with the terms and conditions of the offers.
For existing mortgage borrowers, Co-op confirm there’s no change. They will continue on their current deal, SVR (4.74%) or they can remortgage and apply direct for products.
A Co-op spokesperson said the bank will no longer offer products directly to new consumers as the Platform intermediary brand has been very successful and this allows it to remain competitive.
They added: “The mortgage business of the bank will be written through our Platform intermediary brand going forward as this is successful for us and is continuing to grow.
“We’ve already announced two interest rate reductions on some Platform mortgage products in 2018 and we’re now focused on keeping our products competitive and working with our broker partners to find the best deals for their clients.”
Platform currently offers borrowers at 90% loan to value (LTV) a two-year fixed-rate at 1.84% with a £999 fee, as well as a five-year fix at 2.39% with a £1,499 fee – both deals come with £250 cashback and a free standard valuation.
Co-op Bank’s interim financial report in 2017 revealed in the period to 30 June 2017, 6.5% (2016: 12.5%) of mortgages were originated directly and 93.5% (2016: 87.5%) were through intermediaries.
Mortgage completions reduced slightly to £1.4bn in the first six months of 2017 compared to £1.5bn in the same period of 2016, with lower originations seen in buy-to-let and direct mortgages.