Abbey Mortgage Offer

SpannersUK

Hi, My first post. Just received a letter from Abbey offering me a 2 year fixed rate at 4.19%.

Now that may not seem weird to you but let me explain. I'm currently on their SVR of 4.24% and my LTV is about 88% So what they are offering is to fix my current mortgage at .10% under the SVR for NO fee and NO cost at all.

Doesn't that seem a bit strange? If I look around I can't find a comparative deal anywhere. Anyone have any idea if the banks are about to lower the SVR's in some kind of price war?

Any advice greatly received.

Thanks

davidla

There have been a couple of posts about this in the past 2 weeks or so. I got the same/similar letter from Abbey and took the 3 year offer at 4.19%.
I doubt that the SVR will go down and now we have a further 3 years of knowing that our rate won't rise.

potnoodle_2

i have been waiting for a decent offer from them, i think they just merged with Alliance and Leicester and have recently reduced the deposit needed by ftbers to 10% so they must be flush. Anyway i chose the 5 year at 4.79, no fees, is an extra £20 a month but happy to pay this for peace of mind as i guess rates are likely to go up over next 5 years and if not its not the end of the world at that rate! i am really happy with it.

kmmr

Don't forget to check that you would be happy with the rate you revert to after the fixed rate period. You may not go back onto the SVR, but onto some other rate, although to be honest it can't be much worse than the one you are on now.