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Abbey withdraws 100% mortgage

Abbey has announced it has withdrawn its 100 per cent loan to value mortgage until further notice.

This comes as the lender makes several criteria and rate changes.

Abbey is increasing its fixed rates by between 0.11 per cent and 0.37 per cent. Its best two year fixed rate at 90 per cent LTV will now be 5.99 per cent.

It is also increasing its tracker rates by 0.35 per cent. Its best two year tracker rate at 90 per cent LTV is now 6.49 per cent.

The lender is also simplifying its buy to let range and will now offer two year fixed rate and two year tracker products only.

As part of its range simplification, Abbey is no longer offering products with the premier homebuyer solution as it claims it has seen a very low demand for these products recently.

It says the withdrawal of its 100 per cent product is a normal approach given the current market conditions and is in line with recent moves by other lenders.

The current range will be withdrawn at 10pm on April 8th with its new range available on April 9th.

A spokesman for Abbey says: “Abbey is seeing high demand following recent competitor moves. In order to maintain high service levels on the business we write, we are simplifying our mortgage range and repricing in some areas.

“Some of the less popular products are being withdrawn until further notice – including our 100 per cent loan to value option – however, we still offer a full range of mortgages, across short and longer term fixed, trackers and flexible mortgages. We have also taken the opportunity to simplify our buy to let range in line with the demand we expect to see going forward for this type of product.”

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