Abbey and Nationwide launch new mortgage deals Rates and fees reduced on selected products

05 October 2009

mortgage papers

Variable rate mortgages can leave you vulnerable to increases in the Bank of England base rate

Two of Britain's biggest mortgage lenders, Abbey and Nationwide, have launched a selection of new lower rate products.

While Nationwide has cut the rates on a selection of its tracker and fixed rate mortgages, Abbey has launched a range of deals with special benefits for homebuyers.

New mortgage deals from Abbey

Abbey’s new range of Homebuyer Plus mortgages is intended to appeal to first time buyers in particular. It comes with free legals and valuation, which the bank claims could see customers save up to £1,650 up front.

The Homebuyer Plus product range includes a two-year at 3.29%. This loan is available at a (LTV) of up to 75%, meaning homebuyers interested in it will need a deposit of at least 25% to qualify.

Abbey is also offering a two-year with Homebuyer Plus benefits. It comes with a rate of 3.99% and is available up to 70% LTV.

The bank has also launched a new range of 80% LTV products. The two year deals come with a rate of 5.79%, a fee of £995 and either the Homebuyer Plus or Homebuyer solution (free valuation and up to £250 cashback on completion).

Nationwide cuts mortgage rates

Meanwhile, Nationwide has cut the rates on a number of its fixed rate and tracker deals.

The building society’s two-year fixed rate mortgage for homebuyers is now available from 3.88%, up to a maximum LTV of 70%.

Nationwide is also offering homebuyers a two-year tracker mortgage from 2.94%, up to a maximum LTV of 70%.

Not all about rate

Which? property and mortgages expert Cathy Neal said: 'Given that mortgage finance has been very restricted since the credit crunch, it's always good to hear of lenders launching new products and reducing their rates.

‘However, it's important that consumers don't forget to properly compare which deals might be available to them. Headline rate is not the only factor you should consider when choosing a mortgage - booking and reservation fees can also make a huge difference to the overall cost of your home loan.

‘Therefore, it's a good idea to take these into account and assess the total cost of any deal before committing to it.'

Finding the best mortgage

Ms Neal advises those looking for a new mortgage to explore a range of options before committing to a deal.

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