View more on these topics

Abbey reports 33% increase in new business in one week

Abbey for Intermediaries says it’s seen a 33 per cent increase in business since the launch of its new range last Friday.

The intermediary lender for Santander UK says the spike in new business has been driven by strong demand for its two-year 2.79 per cent deal for all key accounts.

The product, which Abbey says is available to 95 per cent of the broker market, comes with a £995 fee and is available to both homebuyers and remortgagers up to 60 per cent LTV, with a maximum loan size of £1m.

It also slashed its main residential range by 0.75 per cent last week and its buy-to-let range by up to 1.04 per cent.

Trinity Financial’s head of communications, marketing and products Aaron Strutt says that it’s understandable considering the product is a genuine best buy in the market.

He says: “It has a lower arrangement fee compared to West Bromwich and HSBC’s direct deals. It makes a change as Abbey has been out of the best buy tables for a while and this is not something brokers are used to.”

At the end of July Santander UK, Abbey’s parent group, reported that its gross mortgage lending had fallen to £8.7bn in the first half of 2012, down from £9.7bn in the same period of 2011. Its market share of gross mortgage lending had also shrunk from 15.2 per cent to 12.9 per cent. There was also £2.8bn negative net lending due to a managed reduction in the mortgage stock.

The half year report went on to say that the expectation for the second half iof 2012 was a further managed reduction in the mortgage stock and a lower market share.

It said that the proportion of mortgage applications made through the branch network increased, with an associated reduction in the intermediary channel. It said this reflected a planned shift to strengthen customer relationships and doing more business face to face.

But Abbey’s managing director Miguel Sard says he’s been delighted to see the appetite among brokers for the products and that service wise both residential and buy-to-let products have an average time to offer of 10 days.

He says: “Our key account exclusive has been extremely popular with both homebuyers and remortgagers looking for a market leading rate in today’s challenging economic conditions.”

Recommended

Chelsea cuts rates across product range

Chelsea Building Society is making rate cuts across its product range from Thursday. The cuts will affect selected fixed rate and tracker mortgages at 70 per cent and 90 per cent LTV while £500 cashback products are also being introduced to help purchasing and remortgaging customers. A two year fixed rate mortgage at 70 per […]

8% rise in home mover loans

The number of loans taken out by home movers rose by 8 per cent compared with June and by 4 per cent on July last year, the latest figures out from the Council of Mortgage Lenders reveal. Home movers were advanced 30,500 loans worth £5.1bn in July, with the increase contributing to a jump in […]

Incomes forecast to rise from next year

Real disposable incomes are set to rise again in 2013 after four consecutive years of decline. The latest report by economic forecasters Cebr suggests that incomes will continue to fall over the course of 2012, by 0.2 per cent, due to slow wage growth and high inflation. By 2013 this downward trend is expected to […]

Only 1% rise in new advances for Q2 2012

New advances increased by 1 per cent in the second quarter to £37bn from £36.4bn the quarter before, according to the latest mortgage lending data from the FSA.

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • GHU 18th September 2012 at 2:57 pm

    Has Bobby ever made a positive or unbiased comment on here? Thought he was getting out of the business because it was all so dire.

    And it is easy to get more business – just put your prices down to a loss leading level

  • Bobby 17th September 2012 at 10:32 am

    The can GUARNATEE their service levels will be appalling again by the end of the week. Why are people fooled by these promises? I wouldn’ touch them with a bargepole. At the start of the year they did everything possible to discourage business and using them. One of the worst lenders in the market. I would never recommend a client use them.

  • Fat Mortgage Bloke 15th September 2012 at 9:22 am

    It won’t last…Abbey will soon revert to their old ways.

    Changing their mind withdrawing offers and then you have to tell the customer and lose the customer!!!

  • Richard Lloyd Jones 14th September 2012 at 9:46 pm

    Thats 4 deals done this week then!

  • Fran 14th September 2012 at 4:36 pm

    They are dual pricing in our favour and johnny is still moaning – get selling – great to have abbey back

  • Andrew Haynes 14th September 2012 at 4:07 pm

    To Anonymous 14 Sep 3.25pm. Nationwide will take note, but they are currently working on comments made on 28th Aug 2012!

  • Johnny Fantastic 14th September 2012 at 4:03 pm

    Sure, service is okay now – Abbey have only just turned the tap back on, so wait for the inevitable service crash! Still, good to place your clients with Abbey then move them again when Abbey stiffs them with another SVR hike!

  • James 14th September 2012 at 3:39 pm

    Glad to see you back in the market to lend Abbey. Great products backed up by even better service! Other lenders take note!

  • anon 14th September 2012 at 3:25 pm

    the service is excellent also. Package correctly and you will get your offer within 7 days. Fair play Abbey – nationwide please take note