The recent suggestion about the Alliance and Leicester being taken over by a larger European financial institution has been seen as both a good and bad thing by some experts.
On the one hand the Alliance and Leicester having strong financial support from a much bigger player would instil confidence in customers and probably drive more people to use them. That is a short term scenario though, with the potential longer term one being a market that has less choice.
When organisations join together there is a natural culling of duplicate products and a streamlining of the range – this would be no different with the Alliance and Leicester it has been suggested. Less choice means limited options for mortgage buyers and the likelihood that costs will ultimately be higher.
Abbey National is bringing a 10 year fixed rate mortgage to the market this week aimed at bringing peace of mind to buyers concerned about changing interest rates.
Recent studies have shown that longer period fixed rate mortgages are more popular with consumers, the 5 year versus 3 year fixed rate options proving this point very well. The move by Abbey National to bring in a 10 year fixed rate option is hoped to win more buyers over to the idea, especially as the interest rate is just 6.24 percent. There is an initial fee of GBP999 but this still represents excellent value whilst providing the security that homebuyers crave.
This longer period has impressed industry commentators too since it is expected that Abbey National mortgage customers taking out this option will not be left to face dramatically higher interest rates when the term ends, which is what is happening right now as the plethora of 2 year fixed rate mortgages come to an end.
In what is understood to be a unique agreement, the IFS School of Finance has agreed to train and provide accreditation for all underwriting staff at Abbey National.
All underwriting staff will have a choice of two levels of training, Certificate or Diploma. The Certificate level course will be achieved in conjunction with the Abbey National certificate in underwriting and provide a customer services professional level qualification. The Diploma is more suited to those aiming for more senior roles and will involve the Applied Diploma in Corporate Banking.
These developments are sure to make the whole operation better in the future, leading to an improved experience for anyone buying an Abbey National mortgage or any form of insurance for which underwriting is needed.
