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Co-Op mortgage offer a sign of the times, says analyst
26 June, 2008Mortgage lender the Co-Op has become the latest in a line of lenders to alter their mortgage process, in light of the credit crisis.
Mortgage lender the Co-Op has become the latest in a line of lenders to alter their mortgage process, in light of the credit crisis.
The mortgage provider has announced its latest mortgage offer, which includes requiring customers to sign up for a current account at the same time as they apply for a mortgage.
The bank has taken the step in light of tightened belts across the finance industry, and reflects the changes being made by homebuilders in the UK.
Currently the outlook for housebuilders is not ideal, with interest rates not predicted to fall for the rest of the year, and some analysts are whispering about further rises.
As a result, there is great pressure on both the construction and financial industries, and the latest move by the Co-Op is seen as a protective measure, as it will allow lenders to gain a better understanding of their future customer's finances.
"Tying customers into a current account with the lure of an attractive mortgage product range is a clever move by the Co-Operative Bank," said Louise Cuming, head of mortgages at moneysupermarket.com.
"By targeting its current account customers, the Co-Op can cherry pick the most financially sound applicants, so its market leading rate will only be available to market leading applicants."
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