Co-operative Bank Mortgage Rate and Criteria Update – September 2025

Important Changes to Co-operative Bank Mortgage Products – What You Need to Know

The Co-operative Bank has announced a re-launch of its Mainstream and Buy to Let fixed-rate mortgage products, with specific rate increases taking effect from 24 September 2025. This update affects both residential and buy-to-let new business customers across various loan-to-value brackets. Existing products at current rates will be withdrawn at 5pm on 23 September 2025, so potential applicants must act quickly to secure current deals.

Detailed Mortgage Rate Changes

Residential Mortgages

• 2 & 3 Year Fixed Purchase Products: Rates increased by up to 0.13% across 80%, 90%, and 95% LTV bands.
• 2-Year Fixed Remortgage Products (with £999 fee): Rates increased by up to 0.14% at 70% and 85% LTV.

Professional Mortgages

• No change to professional mortgage products at this time.

Buy to Let Mortgages

• 2-Year Fixed Product (with £0 fee) at 65% LTV: Rate increased by 0.05%.

No changes have been announced for existing customer retention rates.

Updated Lending Criteria and Policy Highlights

The Co-operative Bank continues to offer significant flexibility in its residential lending policies. These criteria updates are especially valuable for borrowers with unique or developing employment situations. The current policies allow for:

• Acceptance of job changes effective up to 6 months in advance.
• Consideration of applicants in probation periods.
• Applicants with gaps in employment history can be considered.
• Acceptance of first job roles and first employed short-term contracts (minimum 12-month contract).
• Lending available up to 95% loan-to-value (LTV) for eligible scenarios.

Who Can Benefit Most from These Updates?

• First-time buyers with high LTV requirements (up to 95% LTV).
• Home movers and purchasers needing employment assessment flexibility.
• Remortgage customers at 70% and 85% LTV seeking a medium-term fixed deal.
• Buy-to-let landlords looking for a fixed-rate mortgage at 65% LTV with no upfront fee.
• Anyone starting a new job, on probation, or holding a short-term contract (subject to minimum requirements).

Why Consider the Co-operative Bank for Your Mortgage?

• Employment flexibility: Policies designed to accommodate diverse and modern work arrangements, including future job changes and non-standard contracts.
• High LTV lending: Support for those with smaller deposits, up to 95% LTV for eligible residential borrowers.
• Consistent product offering: Regular product refreshes and transparent communication on rate changes, helping you plan your application timing.
• Ethical banking reputation: The Co-operative Bank is known for its commitment to ethical practices and responsible lending.

Next Steps: Act Quickly to Secure Current Rates

If you wish to secure the current (pre-increase) mortgage rates with The Co-operative Bank, you must ensure your application is fully submitted by 5pm on 23 September 2025. After this deadline, the new, slightly higher rates will apply for new applicants.

For expert, tailored mortgage advice on the latest products and criteria, contact our team today. We offer whole-of-market guidance to help you find the most suitable deal for your circumstances, whether you’re a first-time buyer, home mover, landlord, or looking to remortgage.

Frequently Asked Questions (FAQs)

• Who qualifies for The Co-operative Bank’s flexible employment criteria?
  Applicants with future job changes (up to 6 months ahead), probation periods, gaps in employment, first jobs, or 12+ month contracts may qualify—subject to overall affordability checks.
• How much will the mortgage rate increase affect my monthly payments?
  The increases range from 0.05% to 0.14% depending on the product. For an average mortgage, this could mean a small monthly increase; your adviser can give an exact figure.
• Are these rates available for buy-to-let investors?
  Yes, rate increases apply to the 2-year fixed product at 65% LTV with £0 fee. Speak to our team about your portfolio needs.
• What is the deadline to apply for the current rates?
  All applications for current rates must be submitted by 5pm on 23 September 2025.
• How do I apply or check my eligibility?
  Contact our expert advisers for a free assessment. We’ll help you understand your options and guide you through the full application process.