View more on these topics

Abbey launches Reward Mortgage

Abbey has launched its Reward Mortgage which gives borrowers regular cashback every two years.

The product has a guaranteed lifetime tracker rate of 1.24% above the Bank of England base rate, with no booking fees or early redemption penalties.

Reward Mortgage customers will get back 1% of their outstanding mortgage balance every two years, which they can use to reduce the balance and pay the mortgage back earlier, or take as cash. Abbey says this is the only mortgage on the market that rewards customers with a regular lump sum in cash.

The mortgage is fully portable and if in the future the client wishes to borrow more money for home improvements, they can take out a Reward Mortgage home improvement loan for the extra funds they need, which will also pay 1% cash back every two years.

Ambrose McGinn, director of Abbey for Intermediaries, says: “The Reward Mortgage will be ideal for IFAs with clients who want a competitive deal for the lifetime of their mortgage, with the added plus of getting something back. This product is a new approach to rewarding loyalty. It&#39s a great choice for people who don&#39t want the cost and bother or remortgaging every couple of years.”

Intermediaries offering the Reward Mortgage to first-time buyers, people moving home and remortgage customers can also offer the option of having Abbey pay for their legal and valuation fees in return for paying a slightly higher mortgage interest rate.

If customers choose this option, the interest rate is increased by 0.10% where the mortgage rate will track the Bank of England base rate plus 1.34%. Customers taking this option will have to repay the cost of the legal and valuation fees if they redeem the mortgage in the first two years.

Recommended

The Exchange to launch Special Risk Centre

The Exchange is to launch a Special Risks Centre on Exweb which will enable fast and efficient processing of non-standard life and protection cases. The key benefits of the service are expected to include making non-standard terms more competitive and accessible as well as reducing costs for both intermediaries and product providers. Research by The […]

Online valuations seen as most vital e-business development

Four out of five advisers claim online valuations are the most vital e-business development to help their business, research by 1st Software reveals. Following a period of rapid development by providers, portals and online adviser services, the poll revealed a positive picture of growing e-business usage amongst the adviser population. A surprisingly high 40% of […]

Former Alexander Hall PR manager joins Kensington Mortgages

Laura MacKendrick, former PR manager at Alexander Hall, has been appointed PR and communications manager at Kensington Mortgages. Until recently Financial Dynamics had been managing the PR for Kensington Mortgages but the decision was taken to bring the function inhouseunder MacKendrick&#39s management. Financial Dynamics will continue to support Kensington Group. MacKendrick left Alexander Hall as […]

Rental yields rise in April, Paragon index reveals

Rental yields rose from 7.12% in March to 7.22% in April – reversing the downward drift seen over the past 6 months, Paragon&#39s April buy-to-let index reveals. Paragon says the rise in yields occurred on the back of significantly higher rents achieved by landlords, which rose by 6.0% to £9,651 – a higher percentage than […]

Trouble ahead - thumbnail

Pensions: trouble ahead?

The pace of change in the pension’s space has been little short of astonishing, and has left thousands of employers struggling to keep their pension policy compliant, and also on the right side of current best practice and governance. Many employers, and indeed many in the pensions industry itself, would like to see a period of no change during the next term of government. This would give all sides a chance to catch up and draw breath. 

Newsletter

News and expert analysis straight to your inbox

Sign up