The discount rate is 0.24% above the Bank of England base rate1. After 18 months, it tracks the rate is Bank of England base rate plus 1.24%.
Reward Mortgage also gives 1% cash back of the outstanding balance every two years, so borrowers will receive a cash benefit just six months after the 1% discount ends.
Other benefits include:
Example
On a typical £100,000 repayment mortgage over 25 years, the total cash back payable would be over £7,0002. Should the customer choose to pay the cash directly into the mortgage balance every two years and keep the mortgage payments the same, the mortgage could be paid off in 23 years3, a saving of 2 years' mortgage repayments.
Ambrose McGinn, Director of Abbey for Intermediaries, said: "The discount on the Reward Mortgage is all about widening the choice that IFAs can present to their clients when tailoring a mortgage that suits their needs. The 18 month discount is ideal for people who need to save a bit in the early days of their mortgage when money is needed most. It also has the added attraction of offering real cashback every couple of years, for customers to spend in whatever way they want or put back into their mortgage to pay it off earlier.”
Help with fees
First time buyers, people moving home and re-mortgage customers have the option of allowing Abbey to pay for their legal and valuation fees4, in return for paying a slightly higher mortgage interest rate. This option is clearly priced and if customers choose this option, the Discount Reward Mortgage interest rate is increased by 0.25%, which means the mortgage rate will track the Bank of England base rate plus 0.49% for the first 18 months then 1.24% above for the lifetime of the mortgage thereafter. Customers taking this option will have to repay the cost of legal and valuation fees if they redeem the mortgage in the first two years.
There is arrangement fee of £299 for the discounted tracker rate on the Reward Mortgage.
Abbey is offering new customers an 18 month discount of 1% on its Reward Mortgage rate, making the rate just 4.99%. The discount rate is 0.24% above the Bank of England base rate1. After 18 months, it tracks the rate is Bank of England base rate plus 1.24%.
Reward Mortgage also gives 1% cash back of the outstanding balance every two years, so borrowers will receive a cash benefit just six months after the 1% discount ends.
Other benefits include:
Example
On a typical £100,000 repayment mortgage over 25 years, the total cash back payable would be over £7,0002. Should the customer choose to pay the cash directly into the mortgage balance every two years and keep the mortgage payments the same, the mortgage could be paid off in 23 years3, a saving of 2 years' mortgage repayments.
Ambrose McGinn, Director of Abbey for Intermediaries, said: "The discount on the Reward Mortgage is all about widening the choice that IFAs can present to their clients when tailoring a mortgage that suits their needs. The 18 month discount is ideal for people who need to save a bit in the early days of their mortgage when money is needed most. It also has the added attraction of offering real cashback every couple of years, for customers to spend in whatever way they want or put back into their mortgage to pay it off earlier.”
Help with fees
First time buyers, people moving home and re-mortgage customers have the option of allowing Abbey to pay for their legal and valuation fees4, in return for paying a slightly higher mortgage interest rate. This option is clearly priced and if customers choose this option, the Discount Reward Mortgage interest rate is increased by 0.25%, which means the mortgage rate will track the Bank of England base rate plus 0.49% for the first 18 months then 1.24% above for the lifetime of the mortgage thereafter. Customers taking this option will have to repay the cost of legal and valuation fees if they redeem the mortgage in the first two years.
There is arrangement fee of £299 for the discounted tracker rate on the Reward Mortgage.
