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Abbey in 15-Year Fix

ABBEY

15-Year Fixed Rate

Type:
Fixed-rate mortgage

Fixed term:
Until June 2, 2019

Fixed rate:
5.74%

Minimum loan:
£6,000

Maximum loan:
Up to 95% of valuation subject to a maximum of £250,000, up to 90% of valuation subject to a maximum of £1m

Income multiples: Three times principal income plus second or 2.5 times joint

Arrangement fee:
£199

Redemption fee:
365 days&#39 interest until June 2, 2019

Introducer&#39s fee:
Subject to negotiation

Tel: 0870 6000367

Abbey&#39s 15-Year Fixed-Rate mortgage is available for loans up to 95 per cent of valuation at a rate of 5.74 per cent until June 2, 2019.

Priestfield Webber Proprietor Malcolm Martin thinks this mortgage is suitable for customers who are perhaps borrowing the maximum amount possible and fear future interest rate rises will affect affordability.. He says: “There are few long-term fixed rates on the market as borrowers are reluctant to commit themselves to one rate &#45 and more significantly &#45 to one lender for a long period in time.”

Martin feels the interest rate is keenly set when compared with the average rate of interest during the proceeding 15 years. He says: “The major advantage is that the scheme is fully portable should a further Abbey mortgage be required in the future. A free standard valuation is included in the package together with a £250 cashback if selected.”

On the negative side, Martin says: “For borrowers who will want to shop around at a later date for a better scheme then a hefty redemption penalty amounting to the equivalent of one year&#39s interest is payable.”

BROKER RATIUNGS:

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

Overall 7/10

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