Heads up - Abbey raising rates with effect from 29 April

galileo

I've just switched products with Abbey to their lifetime tracker (1.5% above base). I wanted to get the 5 yr fix they offered me only on Thurday last week of 5.99% but all these fixes are now history. I'm told they're raising rates by .2 or .3%.

I can't remortgage as have 20k in unsecured debt which I can't load onto the mortgage cos the LTV would be too high so I'm stuck with Abbey.

I figured that with interest rates going down, the lifetime tracker isn't awful in the current climate, especially as there are no redemption penalties so I can move when I want. I also have the 14 day cooling off period so if fixed rates suddenly reduce again in the next week or so I could go back to my original plan.

It's unbelieveable how deals are only around for a matter of days before being pulled...

owitemisermusa

I think it's probably to do with lenders anticipating a cut in BOE rate so trying to 'get in early' to claw back funds.

simcla

Some rates are being altered tomorrow. Just been on the phone to do an application for the five year fixed rate and they said that rate on that mortgage should stay the same. <70% LTV and 5.41%. Maybe the higher LTV rates are going up?

foreversummer

Looks like the 5.41 is gone. There very best offer now on a 5-year fixed rate is 5.71%.

They made all that fuss last week about offering between rates to those with large deposits and made the cuts, now it seems it's gone back up.

Foreversummer

simcla

Yes foreversummer I checked too.... just glad i rang yesterday!