Co-op Bank brand to exit mortgage market – what does it mean for you?

7 February 2018
Image

The Co-operative Bank is to stop offering mortgages directly to new customers, with the brand set to disappear from the UK mortgage market.

From Friday 9 February 2018, The Co-op Bank will stop selling mortgages to consumers through its website and telephone service. Mortgage sales in branch ended more than a year ago.

The Co-op Bank brand will disappear from the mortgage market from that date, although the provider will still offer retention deals to existing customers, who will not see any change to their current terms and conditions.

After Friday, all Co-op mortgages will be sold through the Platform brand, which is only available to borrowers who use a mortgage broker.

The provider says customers are increasingly looking to take out a mortgage using a broker, so it is choosing to concentrate on this area of the business.

However, this contrasts with recent entrants to the market such as Sainsbury's Bank and M&S Bank, which both offer home loans direct to consumers.

A statement from The Co-op says: “Existing customers will be able to manage their mortgage needs with The Co-operative Bank in line with their mortgage terms and conditions.

“All existing and new customers with mortgage in principles, decision in principles and applications in process with The Co-operative Bank, prior to Friday 9 February 2018 will be honoured and completed within the standard terms and conditions of the offers.”

What does this mean for Co-op customers?

If you’re an existing mortgage customer with the Co-operative Bank, you should continue paying your mortgage as normal and the terms and conditions of your loan will not change.

When you reach the end of your fixed mortgage term, you will be able to continue borrowing from the Co-op Bank, even though it will not accept applications from new customers.

All new customers who have applied for a mortgage prior to Friday’s deadline will have successful applications honoured by the bank, even if the mortgage completes at a later date.

What is Platform mortgages?

Platform has been operating in the UK mortgage market for more than a decade and is wholly owned by the Co-operative Bank.

However, individuals cannot take out mortgages with Platform directly, they must do so using a mortgage broker. Many smaller and specialist mortgage lenders choose to do business in this way as it minimises the cost to the lender as all the paperwork is done by the mortgage broker.

To find a mortgage broker near you, use an adviser finding website such as Unbiased.co.uk or VouchedFor.co.uk.

Comments

In reply to by anonymous_stub (not verified)

Coop are a Bunch of Thieves. In the Bonds Market, they defaulted more than once to pay in Full to the Bondholders, while the Directors take Fat Salaries. Skimming.

Add new comment