Type: Fixed-rate mortgage
Fixed term: Until August 2, 2013
Fixed rate: 5.44%
Minimum loan: 6,000
Maximum loan: Up to 95% of valuation subject to a maximum of 250,000, up to 90% of valuation subject o a maximum of 500,000, up to 85% of valuations subject to a maximum of 850,000, up to 80% of valuation subject to a maximum of 1.5m, up to 75% of valuation subject to maximum of 2.5m, up to 70% of valuation subject to no maximum
Income multiples: Based on affordability
Conditions: Free valuation up to 1,190, 250 cashback towards legal costs, not available for remortgages
Arrangement fee: 449
Redemption fee: 360 days interest in first seven years plus repayment of benefits
Introducers fee: Refer to lender
Tel: 0870 6000 67
This seven-year fixed rate of 5.44 per cent is available from Abbey for loans up to 95 per cent of valuation.
Priestfield Webber proprietor Malcolm Martin views this as a good mortgage scheme to sell to clients who require a medium to long term fixed rate which provides stability, especially to first time buyers with a minimum 5 per cent deposit.
Discussing other positive features of the deal Martin says: Abbey provides an efficient online mortgage application process to enable applications to go to offer in the shortest time possible. Extra benefits include a free valuation for mortgage purposes and a 250 cashback towards legal costs, payable on completion.
However, he thinks the early redemption penalty of 370 days interest is a big downside. Although the mortgage is portable, this will not always suit every existing customers circumstances when next applying for an Abbey
mortgage. Remortgages are also not available on this product, he says.
According to Martin, the main competition will come from Cheltenham & Gloucester, which undercuts the rate by 0.15 per cent, but only allows loans up to 90 per cent of valuation.
Suitability to market: Good
Competitiveness of rate: Good
Adviser remuneration: Average