Brokers welcome Abbey’s move into the 100 per cent mortgage market but do not feel its rates are aggressive enough.
Abbey has re-entered the market, which it left in the early 1990s, with a deal that has a maximum loan to value of £500,000. The range includes a two-year fix at 6.35 per cent with a £995 fee or 6.99 per cent with no fee.
Savills Private Finance associate director Melanie Bien says she expected something different from Abbey. “The products are not revolutionary. We are seeing 125 per cent loans so this is not such a big thing. The rates are not great,” she says.
John Charcol senior technical director Ray Boulger says: “I would have expected Abbey to have been more aggressive on rates to get itself known but it is still a good first step.”
Abbey managing director for intermediaries Ricky Okey says: “We would like to be known for being big in the first-time buyer market.”