Abbey Launch 100% Mortgages
On 13th June, Abbey bank launched it’s range of 100% mortgage loans which can be arranged for a maximum value of £500,000. These new 100% mortgage deals require no deposit and incur a set charge for all levels of borrowing.
The 100 Mortgages are available at 6.29% as a two year tracker mortgage, from 6.35% for a two year fixed mortgage, 6.99% for a three year fixed mortgage and 6.79% for a five year fixed mortgage.
Abbey expect their new offers to be attractive to the first-time buyer market and recently divorced individuals who are looking to get back on the property ladder.
Abbey have acknowledged that for first-time buyers, acquiring a deposit for a property today can be difficult due to high property prices.
While the new 100% mortgages are being seen as meeting a market need Abbey are quick to point out that they have a responsibility to only lend what people can afford and that applicants for their 100% mortgages have a responsibility to inform Abbey on their circumstances. Abbey have stated that they are “not in the business of writing bad loans”.
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