This means that borrowers who want the security of a fixed rate, but are unsure whether they want to commit themselves to a two-year period, can be safe in the knowledge they can move their mortgage at any time without penalty.
The new two-year fixed rate mortgage includes the option to add the £349 booking fee to the loan. This will make it easier for people to manage the upfront costs of moving house or switching their mortgage to Abbey.
Abbey has also made other changes to its mortgage range. It has introduced a six-month fixed rate of 4.99 per cent on its Flexible Plus Mortgage, to help people manage their finances in the early days of the mortgage when money is needed most. After six months, the rate reverts to the Bank of England base rate plus 0.75 (currently 5.50 per cent).
Angus Porter, Abbey's customer director said: "Our range of mortgages offers people some of the lowest rates available on the high street, whether they're first-time buyers, moving home or remortgaging to Abbey.
"With recent rises in the Bank of England base rate, more and more people are being drawn towards fixed rate mortgages, knowing their monthly mortgage repayments will remain unchanged, regardless of any move in base rate. Some people may be taking out a fixed rate for the first time, which is why we've introduced a deal with no early redemption fees. We want to give people the flexibility of moving to an alternative deal if they find it’s no longer suitable."
To help with the cost of moving, a Home Buyer1 benefit package is available on Abbey's fixed rate and variable tracker rate mortgage range.
