Abbey for Intermediaries has cut the interest rate two and five-year fixed-rate mortgage range by upto 0.25% in a bid to make the deals more attractive to customers.
The Glasgow-based insurer says new fixed rates - available to first-time buyers, home movers AND those who are remortgaging - are aimed at people who are worried about a possible interest rate hike.
As a part of the deal, consumers will now have to pay 4.84% for a two-year fixed-rate up to 75% loan to value, and 5.24% for the same kind of loan over a five-year period.
Alternatively, they can also borrow up to 95% loan to value for either 5.04% or 5.44% for a two-year and a five-year fixed rate respectively.
In addition to the new rates, Abbey will also offer a ‘help with fee’ option, where it pays for the mortgage valuation and provides £250 cash back to the consumer. However, while this is optional, it will add another 0.25% to the rates for a two-year fixed-rate mortgage, and another 0.10% to a five-year one.
Ambrose McGinn, director of Abbey for Intermediaries , says: "With predictions that there may be another increase in the Bank of England base rate soon, we expect to see a move by brokers and IFAs towards recommending fixed rate mortgages for their clients.
"Our new range allows intermediaries to offer deals that will suit clients who want to know where they stand each month, in terms of repayments, rather than follow the Bank of England base rate," he adds.IFAonline
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