Abbey is introducing an introductory six-month fixed rate of 4.54% on its Flexible Plus mortgage from December 15.
The product is aimed at borrowers who are unsure about taking a longer-term fixed rate in the current mortgage market, and has the added bonus of no extended tie-in if they decide it’s no longer the right mortgage for them.
The low introductory fixed rate will also help people manage their finances in the early days of the mortgage when money is needed most.
The product is the lowest fixed rate without an extended tie-in available in the marketplace.
There is a guaranteed tracker at the end of the fixed rate of 0.75% above the Bank of England base rate, for the life of the loan and a 349 arrangement fee.
Gary Hockey-Morley, Abbey’s director of mortgages, says: “With continued uncertainty about base rate movement, this is an ideal mortgage with a great rate.
“It gives certainty of payments in the initial months and later on, if borrowers find it’s no longer suitable, we’re giving them the flexibility of moving to an alternative, although there will also be plenty of reasons for staying with us.
“The ongoing tracking differential of 0.75% above base rate is still an excellent tracker deal and this also includes all the benefits of a flexible mortgage.”