The bank said it recognised that some of its customers who had a higher loan to value on their mortgage may be particularly concerned about the change and it has placed measures in place to make alternative options available for these customers.
The average increase seen by Co-op’s SVR customers will be £15 per month.
Its SVR mortgages will continue to include the ability to make unlimited overpayments and customers will be able switch to another mortgage deal with the bank without penalty.
Co-op will also be making a new product available specifically for existing customers with a higher LTV at 90% or above who may want to find an alternative arrangement.
This will be a five year fixed rate mortgage available at the same rate as they currently pay with no upfront fees or charges.
The bank is currently in the process of contacting all our customers who will be affected by this change
