Abbey offers new tracker mortgage deals, Halifax and Lloyds to follow on 100 Mortgages

Abbey who are owned by Spanish banking giant Santander will be offering from tomorrow new tracker deals, being the first to re-launch mortgage products that are pegged to the base rate. Almost every bank and building society including Abbey withdrew their Tracker deals after the Bank of England cut the base interest rate by 1.5 percent last Thursday.

However if you are a homeowner and was looking to cash in on the 1.5 percent interest rate cut you will be left disappointed, the new rates launching tomorrow (November 12) with Abbey are up by 0.7 percent.

Abbey will be offering a two-year tracker at a interest rate of 1.99 percent above the bank of England Base rate which is at 3 percent, so you would be paying 4.99 percent if the interest rate stays at 3 percent. There are other clauses on the deal, you have to have 75 percent loan-to-value or 25 percent equity, and the loan size is capped at £250,000.

Although the full rate cut hasn’t been passed onto the tracker rate by Abbey, it is still cheaper than when the base interest rate was at 4.5 percent, they were offering a Tracker last Thursday before they withdrew it at 1.29 percent above the base so you would have been paying 5.79 percent, if they had continued offering the same Tracker product now then you would be paying 4.29 percent.

Lloyds TSB and its mortgage arm Cheltenham & Gloucester are expected to launch their new tracker products along with Halifax.

Source: timesonline

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