Abbey (barely) lowers fixed rate mortgages
Wed, 07 Oct 2009
The Abbey, a subsidiary of the Santander group has announced reductions on its fixed rate mortgages to the tune of, steady yourselves, 0.11%.
As of today the Abbeys 2 year fixed rate deal will carry a rate of 3.88% on a 70% loan to value basis, not forgetting £995 in fees; their 3 year fixed rate deal meanwhile, will carry a rate of 5.88% on an 85% loan to value basis, hmmm.
The Abbey also announced the introduction of a new tracker mortgage offering a rate of 2.94% on 70% loan-to-value for both homebuyers and remortgages; approaching the mark but not surpassing competitors.
Nici Audhlam-Gardiner, director of mortgages at Abbey, claimed that more people are beginning to seek out fixed-rate deals due to the low base rate, ‘claimed’ being the operative word and apparently synonymous with ‘stabbed in the dark’ in this instance.
He said: "In what is traditionally a very popular time of the year to purchase a house (Land Registry Data would disagree, we are approaching the slowest period of sales) we expect that these reductions to our fixed-rate product range will help more people find an affordable mortgage ".
An Illustration:
On a mortgage of £150,000 this will give you a saving of £9.27 per month, hardly making the mortgage significantly more affordable as Mr Aughlam-Gardiner grandiose claims state.
In conclusion:
The abbey have finally factored in a reduction in rates and are trying to make a fanfare about it whilst still offering largely uncompetitive products once consideration to all fees and LTV’s has been given.