Alliance & Leicester Intermediaries will merge with Abbey for Intermediaries to form one brand from October 15.
The move means all of the combined intermediary products will be branded Abbey for Intermediaries.
To support the move, Abbey for Intermediaries is offering an additional 0.02 per cent for all new Abbey business placed between August 5, 2010 and October 31, 2010.
Santander intermediary distribution managing director Alan Matthewson says: “Consolidating our intermediary mortgage business through the Abbey brand will enable us to align our product offering and increase efficiency. Our number one priority at this time is improving our service levels and focusing all our resources on one brand will help us achieve this quickly.
“Abbey for Intermediaries is a strong brand whose commitment and support to the intermediary market has never wavered over the difficult years. We believe the integration of our intermediary offering will help us provide the service and product offering to enable us to become the intermediary lender of choice.”
Abbey for Intermediaries is also launching a two-year fixed through its key account partners tomorrow, offering a rate of 3.90 per cent with no fee and available up to 75 per cent loan-to-value to homebuyers.
The product, which has a maximum advance of £550,000, comes with a free basic valuation and £250 cashback on completion for homebuyers. It is estimated that over 90 per cent of the intermediary market will be able to access it.