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Good value from Pink and Abbey

Pink Home Loans

Abbey For Intermediaries 3.99% Two-Year Fixed

Type: Fixed-rate mortgage

Fixed term: Until July 2, 2011

Fixed rate: 3.99%

Minimum loan: £6,000

Maximum loan: Up to 75% of valuation subject to a maximum of £550,000

Income multiples: Based on affordability and credit score

Conditions: Capital repayments of up to 10% a year allowed without penalty,
free valuation for properties valued up to £2.5m, £250 cash back

Arrangement fee: £225 mortgage account fee

Redemption fee: 3% of mortgage balance in first two years, repayment of
cashback if mortgage repaid by April 2, 2011

Introducer¹s fee: 0.3% of the original loan

Tel: 08707 590170

This fee-free two-year fixed rate mortgage is available for loans up to 75
per cent within a maximum of £550,000.

London & Country Mortgages technical manager Richard Morea points out that this Abbey deal is available through a number of mortgage clubs, and is for purchases only.

“In this volatile market, the lack of arrangement fee and free valuation – unusual for a purchase product – add good value, making it the market leading fee free two-year fixed rate.”

He says that the fixed rate of 3.99 per cent is up to 1 per cent higher than
the cheapest two-year fixed, but the absence of fees, coupled with a £250
cashback, should make it a serious contender for most borrowers.

Looking at the negative features of the deal, Morea says: “The product is
for purchase customers only, but would suit remortgage borrowers equally
well.”

Identifying the main competitors, Morea says: “There are a number of lenders
such as First Direct, RBS and Mansfield Building Society, who have similar
deals with lower rates, although the fee-free nature of the Abbey deal will
see it compete well with these lower-priced deals.”

BROKER RATINGS

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

Overall 8/10

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