Change to fees on UK mortgages interest only deals from the Co-operative.
Fees for Co-operative UK mortgages interest only deals have been removed by the lender.
The fee change applies only to customers on existing interest-only deals who are making a switch to a repayment deal or, who are extending the terms of their current deal.
James Hillon who is head of mortgages at the Co-operative has advised that as a responsible lender the Co-op are working with their UK mortgages interest only customers to make sure that they are managing their finances correctly.
He added that the lender is entering into regular communication with interest only mortgage customers in order to review their financial situation. He went on to say that it is essential that these customers fully understand their responsibility in repaying their loan.
He added that there are various ways for customers to close the gap between the outstanding mortgage balance and the value of their present investments, as it is imperative that customers recognise the to need to react sooner rather than later and take action.
The Co-operative plan to allow customers on their UK mortgages interest only deals to switch their outstanding mortgage balance to a capital or repayment mortgage free of charge. They will also allow customers to extend the terms of their loan to allow more time to build up sufficient funds to clear the mortgage balance at the end of the deal.
