Abbey is piloting a 100 per cent loan to value product, with the option of a £25,000 secured loan.
However, brokers say the rate is not the most competitive in the market and Abbey’s two-year fixed-rate product only just beats Northern Rock’s Together product.
London & Country mortgage specialist James Cotton says: “At 7.05 per cent for a two-year fixed-rate product, Abbey just pips Northern Rock’s 7.15 per cent deal but with A&L offering rates at 6.78 per cent and BM Solutions at 6.69 per cent, there are still much lower rates on the market.”
Cotton says what sets the product aside is the option of a £25,000 secured loan.
An Abbey spokesman says that it is only testing the product with select brokers and through its branches and it is reviewing it on a day-to-day basis.
He says: “The product is a 100 per cent LTV mortgage plus a secured loan of up to £25,000, depending on individual circumstances. We will assess whether it becomes a permanent part of our portfolio once we have tested this it the marketplace.”