Fixed and offset deals go on offer from Abbey

Abbey for Intermediaries has launched an offset and a five-year fixed-rate mortgage, its managing director has said.

Advertising

The flexible offset mortgage has a rate of 2.95 per cent, which is equivalent to the Bank of England base rate plus 2.45 per cent, according to Miguel Sard.

It has a £995 fee and a loan-to-value ratio of up to 75 per cent for homebuyers and remortgagers. It also allows overpayments, underpayments, payment holidays and offers a funds facility.

The five-year fixed-rate mortgage has a 3.99 per cent rate at 75 per cent LTV and a £495 fee.

However, the rates range from 3.79 per cent for deposits of at least 30 per cent, to 5.69 per cent for an LTV ratio of 85 per cent.

Both products come with AFI’s homebuyer or remortgage solution. The homebuyer solution offers borrowers the a free standard mortgage valuation and £250 cashback on completion, while the remortgage solution offers a free standard mortgage valuation, and either free legal fees or £250 cashback on completion.

Lee Fisher, director for Lancashire-based Fisher and Company Financial Services, said the rates were competitive and the offset product was particularly attractive because interest rates are so low.

He said: “The only downside with offset deals is that they sometimes come with a higher fee or rate. However, offset mortgages are often a good option, and can be particularly useful for self-employed clients who might have a large sum of money in the bank, perhaps to pay a future tax bill.”

Remortgages