The Abbey National Intermediaries Division has just announced that it will be offering some exclusive mortgage deals for a number of selected partners.
The offers being provided by Abbey National vary from a low of 5.76 percent up to 5.81 percent, with at least a 50 percent deposit being needed for all the special mortgage deals available. A spokesman said that more offers like this would be released over time, dependent on the situation in the mortgage market at the time.
The Abbey National spokesman went on to say that this was a clear indication to the intermediary market that they are happy to lend money still and support for this important element of the mortgage market is very important to them.
A new range of Alliance and Leicester mortgage products has just been announced with flexibility built in to suit different customer needs.
There are different fixed term periods available, fee or no fee mortgages and also a base rate tracker. Some excellent rates are available, with a maximum loan of 75 percent of the property value enabling the Alliance and Leicester to offer these rates. One of the most popular mortgage options is expected to be the 2 year fixed rate with a 5.99 percent interest rate.
One of the Alliance and Leicester tracker mortgages that customers will find interesting is currently quoting a rate of 5.89 percent for the first 2 years, this is base rate plus 0.89 percent. After 2 years the tracker works at base plus 1.49 percent.
The fact that Northern Rock is making repayments back to the Bank of England for the bail out loan it received seems, on the face of it, to be good news, though it could prove to be detrimental to the mortgage market as a whole.
It has been suggested that Northern Rock is only able to have overpaid on what it owes to date because it has effectively withdrawn from the mortgage market and has received significant sums of money by calling in the home loans. In the very short term it allows Northern Rock to get ahead on their payments, but in the future this means there is less money available in the mortgage market.
If there is less money available to borrow for mortgage customers then the cost of borrowing can rise further, fuelled by demand outstripping supply. Northern Rock mortgages may well come back into the market in the future but at the moment these are worrying times.
