Bank sees mortgage applications soar

The Co-operative Bank said today it had seen a 75% jump in mortgage applications following the launch of its best buy tracker deal.

The group is offering a three-year tracker at 2.39%, or 1.89% above the Bank of England base rate, for people with at least a 25% deposit who pay a £995 application fee.

It said in the two weeks since the loan was introduced on May 27, the value of mortgage applications it was receiving soared to an average of £63 million a week, compared with £36 million the week before the deal was available.

Terry Jordan, head of mortgages at the Co-operative Bank, said: "We have really seen a surge in demand for our new tracker, which offers a more generous loan-to-value (LTV) ratio than most of our competitors' lowest-priced products, at up to 75% LTV."

HSBC offers the next best variable rate product at 2.49% with a £245 fee, although this is only available to people with a 40% deposit, with NatWest offering the next best rate for a 75% LTV at 3.39% with a £799 fee. Both of these products are available over two years.

The Co-operative Bank's mortgage lending totalled £1.3 billion in 2008, up from £807 million in 2007.