Abbey launches no upfront costs mortgages for home movers

Abbey Mortgages has launched a new range of products with no upfront costs designed for people moving home. The range is the only one of its kind in the market to remove all upfront costs - including typical legal fees associated with the sale and purchase of a new property including land registry on homes up to £500,000 - as well as mortgage valuation and booking fees.

Abbey estimates a typical home mover can save £2,000 in fees and charges by taking out one of their no upfront costs mortgages. Legal fees account for approximately £1,400 of that saving. Customers who opt for one of these deals can also benefit from significant discounts on removal costs and payment care, plus cashback on contents insurance after the first year at their new home.

The no upfront costs mortgage range includes three of Abbey’s most popular mortgage deals: two-year and five-year fixed rates and a two-year tracker mortgage. Borrowers can choose from products with or without extended tie-ins. All are available for 90 per cent LTV.

Nici Audhlam-Gardiner, Head of Mortgages at Abbey, said: "Our customers tell us that moving home is among the most stressful and expensive things you can do in life. Our new market leading range of ‘no upfront costs’ mortgages - which unlike other banks' no fee’s deals, cover legal fees as well - will benefit movers who want to minimise the costs associated with moving home, while still enjoying great rates on their mortgage.”

Rates for the no upfront costs range of mortgages are:

2 year fixed

5.34% - with 18 month extended tie-in at a rate equivalent to our standard variable rate

6.37% - with no tie-in

2 year tracker
5.39% - with 18 month extended tie-in as above
6.43% - with no tie-in

5 year fixed
5.89% - with 18 month extended tie-in as above

6.32% - with no tie-in

Customers can elect to take an extended tie-in product, or pay a little more on the rate and not be tied-in. For customers choosing to take an extended tie-in product, this is for a further 18 months. Early redemption charges will apply.

Nici Audhlam-Gardiner, Head of Mortgages at Abbey, continued: “For a typical home mover, legal, valuation and booking fees can add on average £2,000 which is a significant outlay when you are already taking a new mortgage and coping with stamp duty.

“Abbey’s new deals enable movers to minimise their upfront costs and avoid the added worry of sourcing valuation and conveyancing services. We are able to be first to market with this offer through an exclusive agreement for the period of this campaign with Legal Marketing Services (LMS) who will be providing the legal services package to our customers.”