Abbey National mortgages — new logo, new deals
Abbey National mortgages have a new deal,
to go along with the new name (it's just "Abbey"
now) a new logo and a "user does" approach which
looks like being the future of banking.
Compare your mortgage with Abbey interest rates online
Our comparison software will allow you to
scroll to, and select Abbey National mortgage products
specifically. We do recommend you also run a comparison
for "any" (the default), as you may find a better
deal. Click here, whenever you wish . . .
A mortgage fixed for life
The new flavour of Abbey mortgage is one where
the terms of the mortgage are guaranteed for the entire
life of the contract, interest, charges, everything.
In return for an upfront fee, the mortgage conditions will
be fixed for the entire term of the mortgage, making the
prospect of longer-term mortgages much more attractive.
Abbey’s new mortgage fits well with a new identity based
in the tactic of "making banking simpler and democratic",
including simpler and easier to choose mortgages.
Mortgages now include the introduction of
new pick-‘n-mix options. In addition, Abbey will, it says
"reward loyal mortgage customers in a fair and consistent
way".
Low rate for life
By paying an upfront fee of £1,000,
customers will pay just 0.50% above the Bank of England
base rate1 which is guaranteed for the life of the mortgage.
The rate is currently 4.25% compared with Abbey’s current
standard variable rate of 5.75% which means a customer with
a £100,000 mortgage could save over £26,000
over the life of their mortgage2.
Making it easier to choose a mortgage
When Abbey re-launched its business in September
2003, it regrouped its mortgages into three categories to
reflect what customers are really looking for:
Easy Start for people looking for the reassurance
of reduced payments in the early years.
Sure, for people looking for the peace
of mind paying the same amount for their mortgage each month
in the early years, and
Freedom, for people who want to keep their
options open.
From 17 December, customers will be able to
tailor their basic choice of mortgage with `add-ons’ from
a pick 'n' mix list - building a mortgage that really meets
their needs. The options are clearly priced so customers
can see exactly what they are paying for and what impact
it has on their mortgage interest rate – either increasing
or decreasing it.
Some examples:
First time buyer with a 10% deposit, who wants an Easy Start
mortgage:
Easy Start 2 year tracker rate3 3.94%
Add on:
Include valuation and cash back - mortgage
rate increases by 0.25%
Total mortgage rate payable: 4.19%
New customer moving home with a 10% deposit,
who wants a mortgage from the Freedom range:4
•Flexible Plus mortgage rate 4.50%
Add on:
•Guaranteed deal for life (upfront fee of £1,000)
rate decreases by 0.25%
•Total mortgage rate payable: 4.25%
Loyal mover discount
Abbey is committed to finding a way to reward loyal customers
in a fair and clear way. As a first step, it is introducing
a small loyalty discount on two of its most popular mortgage
ranges.
From 17 December 2003, existing Abbey mortgage
customers moving home who choose:
a two-year Easy Start tracker mortgage or
two-year fixed rate mortgage from Abbey's Sure mortgage
range;
and opt to add on 'help with fees', giving them a free valuation
and £250 cashback
will pay just 0.20% extra on their rate rather
than the normal 0.25%, a discount of 0.05%.
For example:
Existing Abbey mortgage customer moving home,
with a 25% deposit, who wants a mortgage from the Sure range:
Two year fixed rate mortgage rate 5.09%
Add on:
Include valuation and cash back - rate increases
by 0.25%
Existing customer loyalty bonus reduces the rate by 0.05%
Total mortgage rate payable: 5.29%
Copyright
2003 © UK Online Finance. Follow this
link for legal information.
