MAbbey enhances FTB proposition

Ramesh Sharma

June 1, 2004

Its two-year tracker is available at 97 per cent LTV with a rate of 4.74 per cent and includes a fee of £499. The five-year fix operates at 5.34 per cent with 97 per cent LTV and a fee of £399.

Announcing the FTB product enhancements, Lal Tawney, Abbey’s head of mortgage marketing, said: “One of the biggest challenges facing FTBs is raising a deposit for their first property with the average amount standing at around £16,000 compared to just £5,500 five years ago.

“With this in mind, Abbey has eased the pressure on first-timers by requiring a deposit of just 3 per cent which we feel offers more security than a 100 per cent mortgage and more flexibility than a standard 95 per cent deal. For an average FTB property of around £160,000, this would mean a difference of £3,200 which is a significant amount even if you are saving with a partner or friend.”

In addition to its 4.74 and 5.34 per cent offers, Abbey has launched similar deals for FTBs who require assistance with valuation fees. Its two-year tracker, available at 4.99 per cent, has a maximum LTV of 97 per cent and a fee of £499. A five-year fixed rate at 97 per cent LTV is also available at 5.44 per cent.

However, Harry Katz, principal at Norwest Consultants, said the offers should be available to all borrowers. “I thought special offers to a particular group was frowned upon; why is this not available to all Abbey customers? This sort of policy on its own is enough to put me off a lender,” he said.

Abbey also announced the withdrawal of its five-year 4.79 per cent discount product and an increase by 0.10 per cent of its two and three-year stepped fixed rate mortgages. Its five-year fixed rate has increased by 0.05 per cent.

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