MANCHESTER, England, August 29 /PRNewswire/ --     The Co-operative Bank is launching a new market leading
25-year fixed rate mortgage. The new mortgage will be available from Friday
31st August and comes with the following features:

- A competitive fixed rate of 5.99%

- GBP499 application fee

- No early repayment charges after the first ten years

- No higher lending charges

- Free standard legal and basic valuation fees for remortgages

- Customers can make overpayments of up to 5% during the first
10 years

- Maximum 95% Loan To Value

- Fully portable for any customers who move home

The Government has recently called on lenders to provide
longer-term fixed deals to provide stability within the housing market.
Customers taking out this new mortgage will not only benefit from protection
against any future interest rate rise but will also save money on fees, as
there is only one initial application fee to pay over the 25-year term.

Furthermore the new mortgage comes with added green benefits
as a donation to Climate Care is made for every year of the mortgage. Houses
are one of the largest sources of carbon dioxide emissions in the UK and the
annual donation enables Climate Care to offset a fifth of an average home's
carbon dioxide emissions each year for the lifetime of the mortgage.
Customers also benefit from a free home energy report.

John Barker, Head of Mortgages at Co-operative Financial
Services, said: "This new mortgage offers customers an extremely competitive
rate, along with the peace of mind that the rate will remain fixed at this
level, whilst offering all the flexibility of a portable product enabling
customers to move home and take their mortgage with them."

Besides offering a comprehensive range of mortgage products,
the Co-operative Bank does not impose costly Higher Lending Charges. Such
charges, which are imposed by other lenders, can potentially cost consumers
up to an additional GBP2,000 when buying a home.

Notes to Editors:

For media purposes only

Full details as follows

- 25-year fixed rate mortgage

- 5.99% until 31.10.2032

- GBP 499 application fee

- Free standard legal and basic valuation fees for remortgages

- Maximum 95% LTV

- 5% early repayment charge until 31/10/2012, then 4% until
31/10/2017

- Product available direct and through branch only (not available
to brokers)

- Customers can make overpayments of up to 5% of the outstanding
balance during the 10yr ERC period.

New mortgage available from Friday 31st August - customers wanting more
information should call 800-0288-288

ISDN facilities are available for broadcast media interviews

The Co-operative Bank is authorised and regulated by the Financial
Services Authority (No. 121885), subscribes to the Banking Code, is a member
of the Financial Ombudsman Service and is licensed by the Office of Fair
Trading (No. 006110).

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR
MORTGAGE