The fix is priced at 5.69 per cent with an application fee of only £199.
The product, which is available exclusively via Mortgage Next, has the following features:
• Rate: 5.69 per cent (APR 7.5 per cent) fixed until 02 September 2009
• Reversion rate: currently 7.59 per cent
• Application fee: £199
• Maximum loan: £500,000
• Higher Lending Charge: None
• Early repayment charge: 60 days during the fixed rate period
• Proc fee: 0.35 per cent (0.45 per cent for flexi)
Justine Tomlinson, marketing director at Mortgage Next, said: “The recent 0.25 per cent rate rise announced by the Bank of England has meant most lenders have had to either re-price or withdraw their fixed rate products. However, fixed rates remain extremely popular, particularly as Mervyn King has hinted that we may be in for another rate increase in order to keep inflation in check.
“This two-year fix funded by the Abbey is not only competitively priced at just 5.69 per cent, but it also comes with an extremely low application fee of just £199. There is bound to be big demand for products such as this, especially when you consider that 78 per cent of all new mortgages granted in March were fixed rates.”
