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Lender says...

Abbey has withdrawn its range of two-year fixed rate deals and replaced them with new three and five-year fixed rate mortgages.

Both the three-year and the four-year product have a rate of 6.34 per cent and are available up to 85 per cent loan-to-value.

The products have an arrangement fee of £995 and the maximum loan size available is £550,000.

The three-year product has an early repayment charge of 3 per cent within the fixed rate period while the four-year product has an early repayment charge of 4 per cent within the fixed rate period.

There is the incentive of a free valuation up to a maximum property value of £2.5m for remortgages as well as free legals.

Adviser says...

Phil Perry, director of Cheshire-based IFA Ark Financial Planning, said Abbey was responding to the changing market with the introduction of three and four-year products.

He said: "The fee is fairly standard for this market and I think that is here to stay. I would not say the rate was the most competitive in the 85 per cent LTV market but it is there or thereabouts.

"You do not come across three or four-year products very often and this is what people are starting to look for as they do not want to fix for five years and they cannot see the economy improving in the next two years."

Rating: 4/5 stars