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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 . . .

Mortgage Calculator

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:

Mortgage Calculator

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%

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