Abbey raises mortgage rates!

Datasafe_2

Abbey is to raise its mortgage rates as of 9/4/08

http://www.citywire.co.uk/adviser/-/news/adviser-news/content.aspx?ID=300349

"Abbey will overhaul its mortgage range with rate increases of up to 0.37% for fixed and tracker rate mortgages, and it will stop offering borrowers 100% loan-to-value mortgages.
The overhaul impacts across Abbey’s mortgage rate with changes to its offset, buy-to-let and Premier Homebuyer ranges.
‘Abbey is seeing high demand following recent competitor moves,’ said Abbey’s spokesman. ‘In order to maintain high service levels on the business we write, we are simplifying our mortgage range and repricing in some areas.’
The current mortgage range will be withdrawn at 10pm on Tuesday, before the new range is launched on Wednesday.
Abbey said withdrawing its 100% LTV mortgages was a ‘normal’ approach to the current market, and followed the lead of other lenders cutting back their maximum loan-to-value ratios.
Fixed-rate mortgages will increase between 0.11% and 0.37%, while two-year tracker rates will increase by 0.35% to 6.49% for a 90% LTV mortgage.
The buy-to-let range has been pared down to offer only two-year fixed and tracker mortgages.
The Premier Homebuyer solution, which offered valuation and legal work for people buying and selling, has been withdrawn due to low demand."

Kez100

As a Abbey customer I've been a bit of a saddo over the years in respect of the product we have but, as I am in good saddo company here, I thought I would share it with you.

Ten years ago we came out of an Abbey deal, just at the same time as I gave birth to my second child. I really couldn't be bothered with any paperwork so took another deal quickly - with Abbey - which was flexible in respect of overpayments and open-ended so we could look for another deal once I was back sleeping at night. It has served us well, so we have never changed but I have kept an eye on the rates for the same product.

We pay BOE +0.69 and paid a fee, I think, of £299. I've seen it over the years fall to +0.49 (fee £599) but we have a pretty low borrowing now and the fee would take years to become a gain so we didn't change. I saw it back to +0.79 not so long ago and today it is at +1.19 and a fee of £2499!!!! It looks like it may even go up more by the end of this week.

Considering this is all margin movements, it's absolutely astonishing.