Abbey revises fixed rate mortgage range

Abbey is increasing the interest rates on its two, three and five-year fixed rate mortgages with effect from April 19 2004, reflecting the higher costs of borrowing on the money markets.

The interest rate on Abbey&#39s 15-year fixed rate mortgage will remain unchanged at 5.74%.

Abbey&#39s fixed rate mortgages are aimed at people who want the reassurance of paying the same amount for their mortgage each month and who value longer term security against any future increases in the Bank of England base rate.

The three-year fixed rate mortgage of 4.94% is still one of the most competitive in the market. It is available for loans up to 90% loan to value and has a booking fee of £499, which customers can either pay upfront or add to their mortgage.

Abbey&#39s fixed rate mortgages are available to first time buyers, re-mortgage customers and people moving home. With Abbey&#39s two and five-year fixed rate mortgages, customers can select further options, which enables them to tailor the fixed rate to suit their needs.

The options include:

• The ability to reduce the fixed rate

• Customers who want a fixed rate mortgage, but would prefer to pay a reduced rate over the fixed rate term, can choose to pay a higher upfront booking fee of £499 in order to reduce the monthly mortgage payment.

• Help with fees

• First-time buyers, people moving home and remortgage customers have the option of allowing Abbey to pay for their legal and valuation fees, in return for paying a slightly higher mortgage interest rate.

Ambrose McGinn, director of Abbey for Intermediaries, says: “With predictions that there may be another increase in the Bank of England base rate soon, intermediaries could well see an increase in demand for fixed rate mortgages.

“In which case, being able to offer clients a competitive rate, at the same time as a predictable monthly repayment, regardless of any move in the base rate, should prove very valuable.”