View more on these topics

Abbey £25k loan deal with 100% mortgage

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.”

Recommended

Keep calm after the storm

Apologies for the crass use of a classic REM song but It’s The End Of The World As We Know It (And I Feel Fine) sums up the situation at present. If the prophets of doom are to be believed, in a month’s time, the market will be in meltdown and some major lenders will be no more.

Labouring over financial services

Speculation about a possible snap election is the biggest talking point in Bournemouth after Chancellor Darling’s actions last week to quell the panic over the Northern Rock debacle.

Pension pressure for Brown

Prime Minister Gordon Brown faced a fierce attack from the Tories and pension campaigners over his treatment of victims of occupational scheme collapses in the first-ever Tory fringe event at a Labour conference.Pension campaigner Ros Altmann told the audience of over 200 people that the pensioners who lost out are “living proof that Gordon Brown […]

Woolwich and Abbey are set to break up Rock share

Woolwich and Abbey have been tipped as two balance sheet lenders that could seize a big part of Northern Rock’s market share.Mortgage Force managing director Rob Clifford told the Money Marketing sub-prime round table that Abbey have grabbed an early lead in terms of emulating a product like Northern Rock’s Together product.But John Charcol senior […]

Guide cover

Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment