Abbey increases rates and slashes maximum loan for offset
Abbey for Intermediaries is increasing rates on a number of its fixed and tracker mortgage products from tomorrow by between 0.10 per cent and 0.50 per cent.
It has also almost halved the maximum loan amount on its flexible offset product from £1m down to £550,000.
In addition, the lender is withdrawing selected no-fee two-year, three-year and five-year fixed rate products at 60 per cent, 75 per cent and 85 per cent LTV and selected two-year tracker remortgage products at 85 per cent LTV.
A spokeswoman for Abbey for Intermediaries says: “Like all lenders, we constantly review our range in line with market conditions and competitor movements. We are committed to supporting the housing market and continue to offer a wide range of competitive products to meet borrowers’ needs.”
Avenue & Co Private Finance specialist lending director Ketan Yadav says the reduction in Abbey’s offset loan size is highly significant and will impact on its business levels.
He says: “Abbey will lose a lot of business from professional high earners who have loans in excess of £550,000 and often offset bonuses and income from property developments against their mortgage.
“By way of comparison, many medium-sized building societies will lend up to at least £750,000 on an offset basis.”