Abbey and Nationwide to lower fixed rate mortgage deals

Abbey and Nationwide are set to lower their fixed rate mortgage ranges today, Friday, as they try to rejuvenate the number of competitive products available to homebuyers and remortgage customers.

Abbey also announced it would launch a new three year and five year fixed rate mortgage products.

The changes will mean that Abbey is now offering some of the most competitive high LTV products in the market, available through both Abbey and Alliance & Leicester branches.

The rate changes include:

Fixed Rates
• New three year fixed, 75 percent LTV mortgage with a £995 booking fee at 4.29 percent, available to remortgage customers who complete before the 26 February 2010. This product offers a 0.10 percent discount to the standard three year fixed remortgage product.
• New five year fixed, 70 per cent LTV mortgage with a £995 booking fee at 4.95 percent, available to both homebuyers and remortgage customers.
• Four year fixed, 75 per cent LTV with no booking fee at 4.89 per cent, down by 0.10 percent.

Nici Audhlam-Gardiner, director of mortgages at Abbey said, “We are seeing an increasing demand for medium-term fixed rate mortgages as homeowners consider the possibility that base rate will rise in the future. We have been cutting rates across our whole range over the past month, making mortgages even more affordable for those looking to get onto the property ladder or who are ready to remortgage onto a new more competitive deal.”

Another lender, Nationwide, announced its new mortgage deals would be available on Friday.

The product range include the following:

For those buying a home:

Two year fixed rate available from 3.69% (up to 70% LTV) and two year tracker available from 2.64% (up to 70% LTV). New customers can borrow up to 85% of LTV, while existing borrowers who are moving home can borrow up to 95% LTV. There is a £99 booking fee and a £896 reservation fee for this service.

Two year fixed rate available from 3.99% (up to 70% LTV) and two year tracker available from 3.24% (up to 70% LTV). This product is available to new customers who can borrow up to 85% LTV, while existing borrowers who will buy a new home can borrow a maximum of 95% LTV. The same booking fee applies.

Three year fixed rate available from 4.39% (up to 70% LTV) and three year tracker available from 2.99% (up to 70% LTV). As in the first two products, new customers can borrow up to 85% LTV and existing borrowers up to 95% LTV. A borrower will be charged £99 booking fee and £896 reservation fee for this product.

Andy McQueen, mortgage director at Nationwide, said, “We are making widespread rate cuts on the majority of our house purchase products of up to 0.29%.  This, together with the special offers we have available for first time buyers and house purchasers, is good news for those trying to get on the housing ladder or secure a new home.”