Spotlight on...Co-op's five-year fixed mortgage

The deal

Co-operative Bank is offering a five year fixed rate mortgage at 3.39 per cent.

The good points

You can't get a lower five year fixed rate at the moment. The nearest is and offering from Yorkshire building society at 3.59 per cent.

The bad points

To qualify you'll need to have a current account with the Co-op as well as a deposit of at least 25 per cent. If you have only a 15 per cent deposit, the rate climbs to 4.24 per cent. The application fee is steep at £999.

Conclusion

The Co-op is currently offering £200 if you switch current accounts to it so, combined with this offer, that could be a powerful inducement. However, you shouldn't switch accounts just for the £200 bribe on offer or a cheap mortgage. Check your sums to ensure you really could save money.