Abacus Daily Debt News

Abbey introduces new tracker mortgages

A new range of “market-leading” three-year tracker mortgages has been introduced by Abbey.

It is designed to offer more choice to customers and build on its line of two-year trackers that are already available.

Rates on the new products begin at 3.99 per cent, with a fee attached of £1,495 and with a loan-to-value (LTV) of 75 per cent.

Additionally, the lender revealed that it is increasing the limit on its 75 per cent LTV trackers from £250,000 to £350,000.

Abbey mortgage director Nici Audhlam-Gardiner said that the firm is committed to offering clients “a broad range of competitive deals” in 2009.

The company has also reduced rates on some of its fixed-rate mortgages and is introducing a new ten-year fix.

Ms Audhlam-Gardiner noted that this allows borrowers to “fix in at a low rate and guarantee certainty of their monthly payments”.

Abacus Comment:
 The 75% loan-to-value makes this deal of little use to first time buyers, but it could be attractive to those with debt to consolidate.
Those with enough equity in their home looking to consolidate unaffordable unsecured debt by a remortgage instead of a IVA or debt management programme should do their maths carefully.
Monthly interest charges can be reduced, but you can be paying it for 15, 20 years - making this a short term fix, which is very expensive in the longer term.