Interest on Abbey mortgages lowest for 10 years

Abbey has launched a new range of fixed-rate mortgage products which it claims are the best it has offered in a decade.

The Santander-owned bank said interest rates on three of its new mortgages are the lowest in ten years.

Available at a maximum 75% loan-to-value (LTV), the new products include a 3-year fix at 4.09%, a 7-year fix at 4.99% and a 15-year fix at 5.38%.

All three products have a £995 fee and a maximum loan size of £250,000.

Other mortgage deals launched this week by Abbey include a 5-year fix at 5.74% with 85% LTV, £995 fee, and maximum loan size of £550,000; and a 10-year fix at 4.99% with 75% LTV and a £995 fee.

Nici Audhlam-Gardiner, Abbey’s director of mortgages, said: “In the last few weeks we have extended our range so there is something to suit every borrower whether they are remortgaging, moving house or making their first step onto the ladder.

“These mortgages are only available until the 14 June, so borrowers need to move quickly to avoid disappointment.”

Mortgage broker John Charcol said it believes the fixed-rate mortgage market is close to the lowest it will get during the current cycle.

Ray Boulger, Charcol’s mortgage expert, said the safest course of action for borrowers is to take out a 5-10 year fixed rate mortgage.

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