As part of the long-term flexible mortgage deal, borrowers will be given the option to fix the rate at the start of the term, before switching to a variable rate for the remainder of the mortgage.
Available for a fixed rate period of six or 12 months, the fixed rate is set at 6.09 and 6.14 per cent, with the rate then reverting to Bank Base Rate plus 0.49 per cent for the term. The range is available on a repayment basis, interest only, or a combination of both, with the option of overpayments or payment holidays. The ‘Fix and Flex’ initiative is available up to 90 per cent loan-to-value. Products include six and 12 month Fix and Flex with no solution, with home buyer solution or for a remortgage solution. Any loan over £500,000 will incur an arrangement fee of £9,999.
Commenting on the range, Nici Audhlam-Gardner, head of mortgages at Abbey, said: Our ‘Fix and Flex’ product is perfect for people who are looking for a deal for life but want some certainty in the short term.”
James Cotton, mortgage specialist for London & Country, commented: “£9,999 undercuts Halifax’s 2 per cent fee. It’s a very high fee to look competitive by comparison to rate fees. But we’re not looking at super mortgage territory and it’s not all that’s around in the market. We definitely don’t want people thinking that they have to pay a big fee for a big mortgage.”
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