The launch of the lender's 'Fix and Flex' product which puts a price tag on the product fee, rather than a percentage, has met with mixed reactions.
Ricky Okey, managing director of Abbey for Intermediaries, explained Abbey's position: "We endeavour to provide our customers options that are suitable for their individual circumstances.
"For some it is a low rate with higher arrangement fee - large loans in particular tend to find this option works for them.
"For others a minimal fee is preferable at the expense of securing the cheapest rate - for instance first time buyers who are trying to avoid upfront costs. It's all about offering the customers a choice.
"To put this fee into context, many of our competitors charge a percentage fee on large loans. So for a £750,000 mortgage a 2 per cent fee is £15,000 which is substantially higher than our £9,999.
"What's more, we have other options within our mortgage portfolio for people who would prefer not to pay an upfront fee, so it is up to customers and their brokers to decide which option is most suitable for them.
"The large loan with 5.59 per cent rate and £9,999 fee is available through brokers only, so customers will be guided as to whether this is the correct option for them by their broker."
