Abbey launch new mortgage range

Published: February 13, 2009

Abbey have announced the launch of a new mortgage range available immediately. The changes include a reduction to some two and three year fixed rates, and some changes to the current range of tracker products. The Abbey will also take the opportunity to launch a new two year fixed rate for those wishing to borrow up to 85% of the value of their property, and a new five year fixed rate with no arrangement fee at 75% LTV. The new five year fixed rate is priced at 4.99% which is particularly good value at a time when a reasonably priced mortgage with no arrangement of booking fee is hard to find.

The highlight of the changes is probably a new two year fixed rate remortgage special which is available at 3.99% and for applications up to 75% of the value of the property being remortgaged. The scheme features a free valuation and Abbey will meet the legal costs of transferring the mortgage to them. The arrangement fee is £1,995, but this can be added to the loan is required. For those who would prefer a lower arrangement fee, there is the option of an increased rate of 4.19% with an arrangement fee of £995.

Last week Abbey reported a substantial increase in pre-tax profits, and was one of the main contributors to the profits of parent company Santander. Santander, who also own the Alliance & Leicester have been following a policy of active expansion in the United Kingdom, and this is reflected in the fact that they are now rumoured to account for over one in four of all new mortgages taken out. The rates they offer to borrowers they are frequently the lowest, and according to their announcement, they were the only lender to maintain the availability of tracker products during the course of the recent reduction in the Bank of England base rate.