The first is a five year fixed-rate stepped product with a low first year rate of 3.99% that increases in the second and third years to 5.79% and 5.99% in years four and five respectively. The five-year mortgage has an application fee of £799
The second mortgage introduced this week is a 15-year fixed rate mortgage with a rate of 5.39%. The 15-year fixed-rate mortgage has an application fee of £599.
Nici Audhlam-Gardiner, Head of Mortgages at Abbey, said: “Both new products offer something different to customers. The stepped mortgage gives people the chance to benefit from lower upfront costs, which can help support buyers trying to get on the property ladder for the first time. The 15-year fixed-rate mortgage allows people to enjoy the certainty that repayments are fixed for the duration: we know this is particularly important to our customers in the current rising interest rate environment”.
Existing Products
As well as the launch of these new mortgage products Abbey has also moved some of its existing rates.
Nici Audhlam-Gardiner added: "Following the rise in SWAP rates in December and early January, we have found it necessary to make these changes to our fixed-rate products, although even after these changes, Abbey’s full range of mortgage deals remains very competitive.”
The changes are effective from 22 January and do not affect rates for existing customers.
