Nationwide and Abbey are 'best buy' mortgages

26 May 2008 / by Rachael Stiles
Nationwide and Abbey have come out on top of John Charcol's best-buy mortgage table, released today.

The best fixed rate mortgage deal was found to be from Nationwide, offering a two year fixed rate of 5.95 per cent, reverting to 6.49 per cent at the end of the fixed rate; it requires a fee of £599 and is only available to people purchasing their property.

Abbey offers the best discount and tracker mortgages, according to the table, charging 6.02 per cent, available to remortgage customers only.

Abbey reported earlier this week that its five year fixed rate deals has been increasing in popularity, rising from 12 per cent in February to 30 per cent in May.

Phil Cliff, director of Abbey mortgages said: "Opting for a longer term fix rate mortgage will provide mortgage borrowers with financial security in uncertain economic times. Whilst the May decision by the Bank of England was to maintain the base rate at five per cent, inflationary pressures mean that it is unlikely to fall again soon, and some commentators even think that inflation could lead to increasing mortgage rates.

"For borrowers who do want to fix for five years, there are some very competitive deals out there at the moment."

And despite its high ranking on the list of 'best buys' Nationwide announced a 40 per cent drop in its mortgage lending for 2007 earlier this week.

Other high ranking offers included fixed rate deals from the bank of Ireland and The Woolwich, and discount and tracker mortgages from The Woolwich and Manchester Building Society.

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