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Abbey launches no upfront costs mortgages

1 October, 2009

Having no fees could potentially save customers as much as £1,650 in upfront costs, according to Abbey. And with an estimated 40,800 people expected to purchase a house across England and Wales over the next month, this could collectively save customers more than £65million.

The new ‘Homebuyer Plus' product range, available via mortgage intermediaries, includes the following new products:

• 3.29%, two year tracker at 75% LTV
• 3.99%, two year fixed-rate at 70% LTV
• 5.79%, two year fixed-rate at 80% LTV
• 5.99%, three year fixed-rate at 85% LTV

Customers who take advantage of the new product range will not have to pay for a valuation or their legal costs for buying their new home. The range will also save them time and hassle in finding their own solicitor, especially if, like many first time buyers, they have not already appointed one.

Nici Audhlam-Gardiner, Abbey mortgages director said: "We remain committed to helping first-time buyers get a foot onto the property ladder and the new Homebuyer Plus range of mortgages is yet another example of this. We have combined very competitive rates with a massive saving in up front fees and various options for fixed or tracker rates to give first time buyers the options they need."

From today, Abbey is also launching a new range of 80% LTV products available via branches, telephone or intermediaries. The 2-year deals have a rate of 5.79%, a fee of £995 and come with either the Homebuyer or Homebuyer Plus solutions.

Abbey is also introducing two new fee free 4-year fixed rate deals. The details are:

• Fee-free 75% LTV 4-year fix at 5.39% with Homebuyer solution (free valuation and up to £250 cashback on completion)
• Fee-free 75% LTV 4-year fix at 5.49% with a remortgage solution (free legals and free valuation)

Abbey has reduced the rates and fees on the 5-year fix, 75% LTV homebuyer and remortgage deals. The new rates are:

• 5.49% 5-year fix at 75% LTV with a £799 fee including homebuyer solution (free valuation and up to £250 cashback on completion)
• 5.59% 5-year fix at 75% LTV with a £799 fee including the remortgage solution (free legals and free valuation)

For existing current account customers, Abbey has removed the fee on its 2-year fixed rate and, 3-year tracker for homebuyer and remortgage customers.