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Abbey to launch 90% LTV deal for brokers

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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The best of the comments from Mortgage Strategy online.

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  • John 27th April 2010 at 9:01 am

    To the editor: it’s Santander. The Shabby Abbey is no more

  • Jon 26th April 2010 at 2:43 pm

    Why not offer the same deal to brokers – as a guess –
    Keep branch staff busy when business levels need to be limited
    Saving of procuration fee when lending via branch
    Less likely that business will leave / switch to another lender at end of discount / fixed period
    Brokers insults and views of company as seen on this thread
    Brokers lack of understanding of pricing as seen on this thread

  • Mortgage Broker N3 26th April 2010 at 2:31 pm

    Abbey is synonymous with DUAL PRICING.

    This is no deal for brokers, in fact its a marketing ploy by Santander to encourage more borrowers to call them first, rather than a broker/IFA.

    Why not offer the same direct only deal to a broker – so clients can choose whether to get appalling service and advice from the high street branch of Snatander, or professional, qualified advice from a hard working broker who will work to earn their commission?

  • Bobby 26th April 2010 at 10:12 am

    Abbey have caused huge problems in the property market and have caused property chains falling through and wasted fees to solicitors. Their name is mud amoungst the legal profession, estate agents, brokers and the whole industry. I don’t think they have the first idea how much the are despised and will find it a very long and very hard process to ever be trusted again. They have done huge damage to their profile.

  • Grey Haired Underwriter 26th April 2010 at 10:09 am

    Bobby, please tell me where a lender can get funds at 2% – I think every lender in the land would be interested!!! On a serious note your comments do appear to display a lack of knowledge of the lenders’ part of the market. Would that everything is as simple as you make it andthat we could all earn 4-5% margins on our business but the truth is far removed from that.

    Firstly the cost of funds is closer to 3-3.5% and a great proportion o this has to be invested as liquid funds in whatever daft way the FSA dictates. Usually Govt bonds paying less than 0.50%. So 25-30% of all money taken in at say 3% actualy loses a lender 2.5%. The income is made on the other 75%. You are also suggesting that interest rates will remain the same for the next five years but I suspect you will find that the rate being charged has to do with the bank’s ability to ‘hedge’ that money over 5 years – a long period to gamble on. It is this that will be a primary driver in the rate being charged.

    So please don’t think that any lender is currently able to sit down and just rake in the money – it just ain’t that simple.

  • Bobby 26th April 2010 at 9:22 am

    They get the funds at 2 % and lend at nearly 7% and charge £ 495, yeah your right perfectly fair.

  • Ajay Kumar Sharma 23rd April 2010 at 6:49 pm

    Abbey’s recent diabolical level of service
    is playing havoc in the intermediary market.Their underwriters and support staff in Glasgow and Belfast offices have got no clue at all about TCF and they doubt every piece of paper provided to them.

  • Not Bobby 23rd April 2010 at 4:13 pm

    Bobby-Given that this is a fixed rate, therefore not priced off of Bank of England in anyway, what exactly does base rate have to do with anything?

    Its called pricing for risk, exactly what lenders were criticised for not doing before!

  • Anonymous 22nd April 2010 at 10:02 pm

    What you have to realise is alot of the problems came from”some” and granted not all brokers, in the past lending irresponsibly. This is therefore, the reason why they are dual pricing as their branch advisors are trained in such away that they have the lenders interests at heart not just trying to place business to people that cant really afford it. Just my opinion!!

  • David Booth 22nd April 2010 at 6:57 pm

    Well done. If we had priced to risk previously this whole mess would not have happened. Bring back MIG’s i say. We can then get back to something like a normal market. We really will in time realize that turning the clock back will work.

  • Bobby 22nd April 2010 at 5:38 pm

    Abbey bring out at rate at new 1% higher than their direct only deal and we are meant to feel privileged !. A rate that is 6.25% over the Bank base rate with a £ 495 fee !. The profit margin must be obscene. Also when it finally get to the underwriter after 4 weeks of faxing their life history including copies of the 25 metre breast strike certificate when they were 7 how many will they sign off for offer ?. 1 in 5 ?.

    They are a disgrace and I hope if/when there is any competition in the market place again they will be left to grovel for scraps of busienss from the brokers of which they will get none.

  • Robin Banks 22nd April 2010 at 4:12 pm

    It’s just Volcano Ash, but we brokers can see right through it!

  • Mark Stroud 22nd April 2010 at 12:22 pm

    Remember as well this lender is offering retention products we can’t touch as well as trying to cross sell at every opportunity. I would not introduce a FTB to this nest of vipers.

  • Dominic 22nd April 2010 at 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 !!

  • Lee Gleave 22nd April 2010 at 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!!!!

  • Brian Frost 22nd April 2010 at 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.

  • mike 22nd April 2010 at 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.

  • Paul 22nd April 2010 at 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!

  • Phillip 22nd April 2010 at 11:12 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.

  • Phillip 22nd April 2010 at 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.

  • Corby Macdonald 22nd April 2010 at 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

  • Moby 22nd April 2010 at 11:02 am

    Good luck with credit scoring and processing! Abbey don’t know their head from their rear end at the moment. Good luck.

  • robert smith 22nd April 2010 at 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

  • Lewis Greene 22nd April 2010 at 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.

  • Richard Alton 22nd April 2010 at 10:56 am

    What Abbey forgot to say is that they have a direct product at 90% LTV at 5.99%.