About Co-operative Bank Loans and Mortgages!

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You have arrived at Loan Seeker as you might be searching for a Co-operative loan or Co-operative mortgage. As Loan Seeker is not connected to the Co-operative Bank, we are not tied to the Co-operative lender panel. This Co-Op Bank article is intended as an introduction to the Co-Op Bank and Co-Operative loan products.

The Co-operative Bank and Co-operative Loans

The Co-operative Bank, originally founded in 1872, as the Co-operative Loan and Deposit department of the Co-operative Wholesale Society, has maintained a reputation for innovation in lending practices, including a statement of ethics as part of its parent organization, the Co-operative Group. Among the innovations that were first implemented in the UK by the Co-operative bank include free checking to customers who remain in good credit, an interest bearing checking account and a no fees "free for life" Gold Visa card.

The Co-operative Bank refuses to invest in companies that perform animal testing, arms trading, genetic engineering or sweated labour, acknowledging that the power of the purse is the power to influence the world.

The Co-operative Bank is a hybridisation between a commercial share-holder owned bank and a mutual lending society – while the bank is held entirely by the mutualized Co-operative Group and Co-operative Investment Services, bank account holders are not voting members, though they do receive dividends, unless they're also full share holders. This hybridisation practice helped the company avoid the demutualization trend of the 1990s which decimated the ranks of the UK's permanent benefit mutual lending societies.

As a privately held institution, the Co-operative Bank may refuse services and products to any customer or potential customer it sees fit. Doing so has caused some controversy, as when it refused to allow evangelical group Christian Voice to open an account as they felt the group's position violated the intent of the bank's ethical practices. They've also gotten into the public spotlight by lending millions of pounds to the Labour Party.

Co-operative Loans and Co-operative Mortgages

The Co-op offers a number of Co-operative loan products to customers and account holders.

Co-operative personal loans range with caps of £7,500 to £25,000, and repayment terms spread between one year and seven. The payment and interest rate are fixed, so you can set an affordable monthly payment that will never change. Personal co-operative loans can be used for nearly any purchase imaginable. As with most lending products, lower interest rates are a function of longer repayment terms and larger amounts borrowed. Loan rates will depend on personal credit history, and range from 6.9% to 31.2% APR.

Flexible lines of credit establish a credit limit of anywhere from £2,00 to £10,000, at a typical APR of 13.9%. If you're a Co-operative Bank account holder, you can have the monthly minimum of 3% deducted from your account automatically. Flexible lines of credit will only charge you for the money outstanding, not for your full credit limit. This is excellent for small business owners who need to stretch between invoices due to them at a reasonable fee. Flexible Co-operative loans are also good for credit consolidation purposes.

The Co-op bank also offers Co-operative mortgages for first time home buyers and long term home owners who need to convert equity in their homes into cash. Typical rates range from 6 to 10% APR. If you're taking out a second mortgage on your home, use it for sound financial purposes – as with any mortgage, you run the risk of losing your home for failure to pay.

Co-operative Bank and Loan-Seeker.co.uk

Loan Seeker does not have a direct commercial relationship with the Co-operative Bank and does not currently promote Co-operative loans or Co-operative mortgages but we may work with lenders who promote the following Co-Operative loan products:

Loan Seeker is an independent resource that works with a number of different lender partners at any time, according to the deals offered by any lender we choose to work with: we always try to match you to the best loan products on the market! As the Co-operative will only offer you Co-operative Bank loans and Co-operative Bank mortgages, you cannot be sure that you will get the best deal. However, if you specifically want a Co-operative loan, you should visit the Co-operative Bank website www.co-operativebank.co.uk.