Type: Flexible tracker mortgage
Tracker term; Lifetime of loan
Tracker rate: 0.49% above Bank of England base rate
Minimum loan: 25,001
Maximum loan: Up to 90% of valuation subject to a maximum of 500,000, up to 85% of valuation subject to a maximum of 850,000, up to 80% of valuation subject to a maximum of 1.5m, up to 75% of valuation subject to a maximum of 2.5m, up to 70% of valuation subject to no maximum
Income multiples: Based on affordability and credit score
Flexible features: Overpayments, underpayments, payment holidays, lump sum withdrawals, interest calculated daily
Conditions: Free valuation up to 1,110 and free legal fees or 250 cashback for remortgages
Arrangement fee: 599
Redemption fee: Calculation based on the amount borrowed, the amount repaid and number of months borrower has been on tracker rate
Introducers fee: Refer to lender
Tel: 0870 6000 367
Abbeys flexible plus mortgage is a tracker mortgage with flexible features.
Brian Pack Financial Service principal Brain Pack says: This has a good interest rate for the life of the mortgage at 90 per cent LTV but the arrangement fee is quite high at 599.
He regards the high arrangement fee as a trend among most lenders and believes it is one of the ways to recoup some of the costs of regulation. The free valuation and 250 cashback are attractive extras. The income multiples are good and the early repayment charges are fair for the contract, he says.
He thinks competition will comes from Leeds Building Society, NatWest and Norwich & Peterborough Building Society.
In conclusion he says: Overall, this is an attractive contract with good appeal to the public.
Suitability to market: Good
Competitiveness of mortgagee rate Good
Adviser remuneration: Average