Two year mortgage range withdrawn by Co-operative

Over recent months an increasing number of mortgage providers have been withdrawing various mortgage deals from the shelves, tightening up on lending criteria, and closing the doors to new customers.

This has resulted from the effects of the global credit crunch, which has made it very difficult for mortgage lenders to get the finance that they need to fund their mortgage lending operations, and as such many have had to downscale radically.

The Co-operative Bank has recently announced that it is withdrawing its range of tow year mortgages on a temporary basis. Officials from the bank state that their mortgages are all funded through consumer deposits, so it is not lack of finance that is forcing the temporary withdrawal of these products.

The withdrawal of the two year mortgage range has been put down to impossible levels of consumer demand fuelled by competitive rates of interest and also by the fact that many other lenders have closed their doors to new customers.

The Head of Mortgages at the bank stated: “We have recently provided a range of very 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.”

He added: “We pride ourselves on our ability to create long-term customer relationships and will not compromise our market leading levels of customer service, by simply chasing business volume at any cost. We have as a result, therefore, decided to withdraw our two-year mortgage range on a temporary basis from close of business on Thursday 3rd April.”