Abbey and Nationwide top best-buy tables

Mortgage broker, John Charcol, has published its latest best-buy tables, which are headed by Nationwide and Abbey.

For fixed-rate loans, Nationwide’s two-year deal gained prominence, charging 5.95% and reverting to 6.49% at the end of the fixed period. A fee of £599 applies.

Abbey’s discount and tracker mortgages also appear high on the list with a rate of 6.02% (bank rate plus 0.97%).

Earlier this week, Abbey reported that its five-year fixed-rate mortgages have been increasing in popularity over the past three months. (The lender has recently reduced the interest rate on its five-year fix to 5.75%, for borrowers requiring a loan-to-value ratio below 75%.)

In a recent survey, Abbey found that 30% of those questioned said they would opt for a five-year fix if they had to remortgage now, up from 24% in April and 12% in February.

The research also showed that demand for two and three-year fixed rate loans has remained steady at 8% and 9% respectively.

Despite its appearance in the best-buy league, Nationwide announced earlier this week that its mortgage lending fell by 40% in 2007.

Meanwhile, Abbey has consistently increased its share of the market during the credit crisis, partly as a result of its Spanish parent company’s ability to borrow from the European Central Bank.

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