In a perhaps unsurprising turn of events, Co-operative Bank has announced the temporary withdrawal of the majority of its fixed-rate mortgage products for new business. This move comes after the bank experienced an overwhelming surge in demand, prompting concerns over service levels and the possibility of undercutting the market.
Mortgage Advisor Jade Pinkerton Talks About Co-Operative Bank
Jade Pinkerton, Senior Mortgage Advisor at Oportfolio Mortgage, shared her insights on the situation. “This is no surprise. The Co-op Bank has been market-leading with regards to rates this week. It was predictable that they will have been getting absolutely swamped with cases. They have been much cheaper than other lenders – by almost 0.5% and 1% in some cases!”
Pinkerton speculates that the withdrawal may be attributed to fears of undercutting the market too much, especially since larger banks have not matched Co-op’s pricing. Additionally, service levels may have become strained due to the influx of mortgage applications, prompting the temporary suspension of fixed-rate products.
“This situation highlights why it is important to be organised and move swiftly in the current market,” Pinkerton emphasised. “For those sitting and hoping rates would just continue to get better and better, they will have unfortunately missed out. At least for the time being.”
She continued, “Rates can go up as well as down, but for those that are organised, there will be some great options available this year. We will advise and strategize with our clients throughout their whole mortgage process – to ensure they end up with the most cost-effective option available to them.”
‘A Highly Respected Mortgage Network’
One key reassurance Pinkerton offers is that applying for a rate does not tie individuals down. Oportfolio Mortgages constantly reviews the market for clients and, if a better rate becomes available, they inform clients and amend their case accordingly.
“As part of a well-established and highly respected mortgage network PRIMIS, we get notified of changes in the market such as rate decreases before they are launched. Meaning that we have a much clearer view of the market than these price comparison sites, that really don’t have any kind of standing. We also have access to broker-only rates that websites will not show,” Pinkerton highlighted.
In conclusion, Pinkerton stressed, “Now more than ever, people need help and advice and someone else looking after everything for them. Taking the stress away is crucial in the current market conditions.”
Speak To a Mortgage Advisor in 2024
While Co-operative Bank’s temporary withdrawal may create a sense of urgency among potential borrowers, it also underscores the importance of staying organised and seeking professional advice to navigate the dynamic mortgage market effectively. Clients can find solace in the fact that mortgage advisors like Oportfolio Mortgage are dedicated to securing the best options for them, even in times of market fluctuations.
If you or anyone you know is looking to get a new mortgage in 2024, whether that is a new purchase, a remortgage, or a product transfer, we are here to help. Call or email our team today to arrange a fee free initial mortgage consultation.