Abbey to launch 90% LTV deal for brokers
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Abbey for Intermediaries is to launch a two-year fixed rate deal at up to 90% LTV, exclusively for brokers.
The deal is available for purchases at 6.75% and comes with a £495 upfront booking fee.
A spokesman for Abbey for Intermediaries says: “This product represents another step in our commitment to offering higher LTV products in the intermediary market.
“We now offer a range of competitive mortgages at 80% LTV and above and expect to further develop our higher LTV offering in the future.”
Aaron Strutt, a broker with Trinity Financial Group, says it is a positive move that 90% LTV deals are being made available to brokers.
He says: “At least Abbey is offering brokers a 90% LTV deal, while other lenders aren’t. The rate isn’t fantastic, but Abbey is actually one of the few lenders making these deals available to brokers, and not just through limited distribution.”
The product will be available from April 23.
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Readers' comments (19)
Anonymous | 22 Apr 2010 10:56 am
What Abbey forgot to say is that they have a direct product at 90% LTV at 5.99%.
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Anonymous | 22 Apr 2010 10:57 am
This is beautiful, I am so happy that we are now getting some good LTV rates again, bring back the 120%LTV.
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robert smith | 22 Apr 2010 10:59 am
How can this be good news.As soon as the fix rate comes to an end,the clients will no doublt have little opportunity to remortgage.They will then be on SVR at what rate? 7,8 or even 10%. not a good idea
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Corby Macdonald | 22 Apr 2010 11:05 am
Why is it such great news? Abbey have a 5.99% 90% LTV 3 year fixed which is only available direct. Its still dual pricing, no matter which way you look at it and may only really be of interest to Panel lenders, who don't have access to the whole of market. I certainly don't think it heralds any fanfare! If they would offer us an even playing field then yes, drums, trumpets the lot, but, not for 6.75%. I agree that some will say the 5.99% is a three year deal, so cannot be compared like for like, but, thats only semantics and to a first time buyer, I am sure the extra £40 odd pound a month saving would be more important
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Anonymous | 22 Apr 2010 11:11 am
What a load of rubbish. There are already cheaper deals than this around and now the fee is upfront. The only good thing is that it might encourage a few more lenders to step down off the fence and get the market moving.
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Anonymous | 22 Apr 2010 11:24 am
It cannot be compared to the direct product as surely anybody taking a 90% mortgage now would go for the longer term lower rate. Abbey underwriting standards have also been awful of late so I doubt there would be too many offers on this product without a letter from the queen detailing affordability!
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mike | 22 Apr 2010 11:28 am
Deal or no deal who are they trying to kid??
Will remember things this when they need business from mortgage brokers in the future as the wheel will turn full circle!! Dual pricing logged into the memory like a few more.
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Brian Frost | 22 Apr 2010 11:28 am
The wheel is turning and lenders will soon be looking to increase market share, lenders BDC visits are now up fifty percent as they prepare to soften us all up and justify the way they have dealt with brokers over the last two years which has been appalling. In my view the best lender although guilty of dual pricing has been Halifax.
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Anonymous | 22 Apr 2010 11:35 am
Couldn't agree more, why they think they are doing us a favour is beyond belief. If they want to be seen to be helping brokers then give us the same bloody deals as direct. I have a database of FTB's looking for 90% products and at 5.99% it could make such a difference to my business!!!!
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Anonymous | 22 Apr 2010 11:44 am
Without getting carried away it's a positive push in the right direction. Realistically if it's a success for Santander other lenders will look to get involved in the higher ltv market.
On a personal note however I am reluctant to give this particualr lender any support due to the way they have sh*fted brokers through what has been a very difficult business period, but if you avoid them you have a TCF problem...which oddly doesn't seem to effect lenders !!
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