Abbey launches first time buyer mortgage at 3.99%

24-Jan-2007

A first time buyer mortgage with a fixed rate starting at 3.99 per cent is among two new mortgage deals being launched by Abbey.

Offering a five-year stepped fixed rate, the first time buyer stepped product begins with a rate of 3.99 per cent in the first year, for an application fee of £799.

The rate then rises to 5.79 per cent in the second and third year and to 5.99 per cent in the final two years.

For the smaller product fee of £599, Abbey is also offering a 15-year fixed rate mortgage with a non-stepped rate of 5.39 per cent.

Nici Audhlam-Gardiner, head of mortgages at Abbey, said: "The stepped mortgage gives people the chance to benefit from lower upfront costs, which can help support buyers trying to get on the property ladder."

She added: "The 15-year fixed rate allows people to enjoy the certainty that repayments are fixed for the duration."

A number of high street banks, such as Alliance & Leicester and HSBC, have been offering new and revised mortgage packages after the Bank of England base rate rose by 0.25 per cent this month.

To find out more about this mortgage and other mortgages for first time buyers, click here.

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