The new fixed rates are aimed at customers who want the reassurance of paying the same amount for their mortgage each month, and who value longer-term security against any future increases in the Bank of England base rate.
The new fixed rate mortgage range is available to clients who are first time buyers, home movers and those who are re-mortgaging:
Two year fixed rates:
- 2 year fixed rate of 4.84 per cent, up to 75 per cent loan to value, which means customers will pay £5.75 for every £1,000 borrowed.
- 2 year fixed rate of 4.99 per cent, up to 90 per cent loan to value, which means customers will pay £5.84 for every £1,000 borrowed.
- 2 year fixed rate of 5.04 per cent, up to 95 per cent loan to value, which means customers will pay £5.87 for every £1,000 borrowed.
Five year fixed rates:
- 5 year fixed rate of 5.24 per cent, up to 75 per cent loan to value, which means customers will pay £5.99 for every £1,000 borrowed.
- 5 year fixed rate of 5.39 per cent, up to 90 per cent loan to value, which means customers will pay £6.08 for every £1,000 borrowed2
- 5 year fixed rate of 5.44 per cent, up to 95 per cent loan to value, which means customers will pay £6.11 for every £1,000 borrowed.
Help with fees
Intermediaries can also offer assistance through Abbey’s 'Help with fees' option, where Abbey pays for the mortgage valuation and provides £250 cash back. The option is clearly priced and customers can see what impact it has on their mortgage interest rate:
- For 2 year fixed rates, the rate will increase by 0.25 per cent
- For 5 year fixed rates, the rate will increase by 0.10 per cent
For example:
First time buyer with a 10% deposit, who wants a 2 year fixed rate mortgage:
- 2 year fixed rate 4.99%
Add on:
- 'Help with fees' - Abbey pays for the valuation and provides cash back.
The mortgage rate increases by 0.25%
- Total mortgage rate payable: 5.24%
Ambrose McGinn, Director of Abbey for Intermediaries, said: “With predictions that there may be another increase in the Bank of England base rate soon, we expect to see a move by brokers and IFAs towards recommending fixed rate mortgages for their clients.
“Our new range allows intermediaries to offer deals that will suit clients who want to know where they stand each month, in terms of repayments, rather than follow the Bank of England base rate. "
For more information on Abbey’s mortgage range, intermediaries can register at www.introducers.abbeynational.co.uk or contact their local Regional Office.
