The Co-operative Bank increases rates

The Co-operative Bank has passed on the 0.25 per cent increase to customers of its Mini Cash ISA, Bonus/Future Fund and Premier Privilege Savings accounts.

The new standard variable mortgage rate will increase from 6.04 per cent to 6.34 per cent with immediate effect for new customers and from Wednesday 1 September for existing customers. For borrowers with the Bank’s six-month Discount Standard Variable Rate mortgage where the loan is less than 75 per cent of the property value, the discounted rate is just 4.74 per cent. This maintains the Bank’s presence as one of the most competitive mortgage providers in the marketplace.

The Co-operative Bank’s Chief Operating Officer, Sheila Macdonald, said: "Our standard variable rate will stay considerably lower than many of the larger mortgage lenders.

"On a £100,000 interest-only mortgage, Co-operative Bank customers can typically expect to be paying £30 per month* less than they would do with some of large lenders."