The Co-operative Bank has launched a new five-year fixed mortgage.

It is only available to current account holders.

It is priced at 3.39% at 75% loan-to-value (LTV) or 4.24% for 85% LTV.

The product is open to new and existing current account customers and has an application fee of £999.

Last week the Co-operative Bank re-launched its entire fixed rate mortgage range last week, reducing rates by up to 60 basis points.

James Hillon, head of mortgages at The Co-operative Bank, said: “At a time when living costs are rising