View more on these topics

Abbey gets aggressive on price


Two-Year Base Rate Tracker

Type: Tracker mortgage

Tracker term: Two years

Tracker rate: 0.13% below Bank of England base rate

Payable rate: 4.37%

Minimum loan: £6,000

Maximum loan: Up to 90% of valuation subject to a maximum loan of £500,000

Income multiples: Based on affordability

Conditions: free valuation subject to a £1,190 maximum, £250 cashback for home purchase, free legal work for remortgages

Arrangement fee: £498 for home purchase including first-time buyers, £597 for remortgages

Redemption fee: Calculation based on the amount repaid and length of tracker term, plus repayment of £250 cashback or maximum of £172 for remortgage legal work

Introducer’s fee: Refer to lender

Tel: 0870 600067

This mortgage tracks the Bank of England base rate for two years and is available for loans up to 90 per cent of valuation.

London & Country mortgage specialist David Hollingworth thinks this new tracker from Abbey is a very aggressively priced two-year deal at 4.37 per cent, which offers attractive incentives alongside the very attractive rate. “On purchase the client will receive a free valuation and a £250 cashback on completion, while those remortgaging are offered a free valuation and free legal work,” he says.

Hollingworth notes there are no early repayment charges beyond the two-year tracking period, “Abbey also backs the product up with flexible underwriting and good service,’ he says.

In Hollingworth’s view, there is not much to criticise about the deal as it offers a clean, sharp rate with good incentives. “ While it helps with a number of costs the £498 arrangement fee payable on purchases is hiked up to £597 for those remortgaging. Having said that, in today’s market neither fee is outrageously high,” he says.

Considering which deals could compete with this one Hollingworth says: “This is a hotly contested marketplace and there are a number of products in the mix. Direct Line’s is very keenly priced at 4.19 per cent and also offers free valuation and legal work for remortgage. However these incentives are repayable if the mortgage is redeemed at any point over the term of the deal and is only available on the internet.”

He adds that Portman offers a deal at 4.35 per cent but this is calculated on annual interest where Abbey is daily interest. Nationwide also has a very similar deal to Abbey. “In fact the rate is the same at 4.37 per cent but Abbey has priced its fee £1 below Nationwide’s,” says Hollingworth.


Suitability to market: Good
Competitiveness of rate: Good
Flexibility: Average
Adviser remuneration: Good

Overall 9/10


Nicholls becomes PFS president

Bristol IFA Carole Nicholls has been elected president of the Personal Finance Society, replacing Brian Steeples, who steps down at this week’s AGM.

Will CML rue the data?

Continuing controversy over the accuracy of the CML’s statistics has called into question its effectiveness as a trade body, says Guy Anker

Investment clock economic update

In the latest Investment Clock economic update, Ian Kernohan, Senior Economist at Royal London Asset Management, discusses the implications of the US Federal Reserve’s recent hike in interest rates and upcoming French presidential election. The value of investments and the income from them is not guaranteed and may go down as well as up and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm