Abbey National will be targeting its 25,000 remortgage customers
this week with its Flexible Plus mortgage which offers a three month
variable discounted rate of 2.99 per cent.
After the three month period, customers will see their rate increase to
4.25 per cent and will track the Bank of England base rate plus 0.75
per cent. The Flexible Plus mortgage will be available to up to 90 per
cent Loan To Value with a maximum credit limit of £250,000.
Abbey promises no redemption penalties or tie-in periods will apply
and is offering free valuation of up to £1,100. The built-in flexibility
means that customers will be able to adapt, with options to make
over or underpayments, take payment holidays as well as offsetting
savings against their mortgage to reduce the amount of interest
charged on the remaining balance.
Group marketing manager Jan Errington says: “It is simpler and
easier to understand than other offset mortgages because
customers don't have to move their current account to qualify.”