According to recent reports one of the latest high street lenders to make changes to its mortgage offerings if the Abbey, which has recently announced a number of changes.
One of the moves made by the bank mirrors moves made by other banks – to reserve best buy mortgages for those with higher deposits to put down whilst offering the worst interest rates to those with a lower deposit.
Anyone with less than 25%b to put down on a deposit will not be able to get one of the most competitive mortgages from Abbey. The bank has also scrapped tracker based deals altogether for those that do not have 25% or more deposit.
Abbey officials also said that they plan to stop selling buy to let mortgages through brokers. They will, however, still be available direct from the lender.
One official from Abbey said: ‘Abbey’s new range includes a 75% LTV range which rewards customers with 25% or more equity in their property with lower rates. This gives customers and brokers access to rates that are up to 0.25% lower than in our previous range. We still offer loans of up to 90% and 95% LTV.’ He added: ‘The changes reflect the continuing market conditions, recent competitor moves and our commitment to maintain service levels. They are in line with the rest of the industry and we will continue to monitor the market.’
On a lighter note, however, the bank has also added that it has cut the rates on its tracker and flexible mortgages, as it is anticipating a fall in the cost of funding between banks.
This will create a challenge for other lenders, and could result in more lenders looking at passing on the base rate cuts and reducing mortgage interest rates for borrowers.
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