Abbey helps those seeking long term stability
01 April 2004
Abbey has announced its new 15-year fixed rate mortgage.
Abbey believes that long-term fixed mortgages offer consumers a greater choice while appealing to people preferring a guaranteed future to their finances.
The new rate will remain fixed at 5.74 per cent regardless of any changes to the Bank of England base rate over the coming years.
It also allows for transferability without incurring a penalty, should a customer move house during this 15-year period.
"The issue of long-term fixed rate mortgages has been prominent recently following the Miles review," commented Angus Porter, Abbey's customer director.
"Although there has been a limited appetite for these mortgages so far, recent increases in the Bank of England base rate and predictions of more rises to come this year mean that more people are looking for longer-term security, making the prospect of such mortgages more attractive."
The Miles report, a sponsored by the Treasury, said investment into long-term mortgage deals was a vital step towards stability in the housing market.
Professor Miles' report also called for lenders to make their full range of mortgage products available to all borrowers.