Let battle commence as lenders wage rate war

Published: 13/09/2012

After Barclays slashed its rates last week, ultimately laying down the gauntlet to its competitors, Abbey for Intermediaries have stepped up and launched a new two-year fix at 2.79 per cent.

Barclays’ move was undoubtedly aggressive; designed to lure customers away from their current lenders following a spree of standard variable rate increases. Not only did the high street bank slash rates on its Great Escape product, aptly named to aid and abet customers looking to get away from their existing lender, it cut retention mortgage rates, two, four and five year fixed products and its three year NewBuy mortgage deal.

However Abbey for Intermediaries, which offers exclusive rates to mortgage brokers and financial advisers, has bitten back with this new product as well as cutting its buy to let rates by up to 1.04 per cent and its residential mortgages by up to 0.75 per cent.

The two-year fix at 2.79 per cent is available for up to 60 per cent loan to value (LTV) and with a fee of £995. Meanwhile its residential range now includes a two-year fixed rate at 3.29 per cent which is available to existing customer eligible to remortgage at 70 per cent LTV and a three-year fixed for homebuyers at 70 per cent LTV at 3.09 per cent.

Such competition is great for homebuyers and remortgagers alike who have been discouraged from taking any action in recent times.

Content correct at time of publication