Abbey adds new ‘fix and flex’ to mortgage range

From 31 October 2007, Abbey will be adding a new ‘Fix and Flex’ range of mortgages to its portfolio.

The ‘Fix and Flex’ mortgage is a long-term flexible deal which allows customers to fix at the start of the mortgage, then revert to a competitive variable rate for the remainder of the mortgage term.

Customers can choose whether they want to fix for 6 or 12 months (at 6.09 per cent or 6.14 per cent respectively). When the fixed period ends, the rate reverts to 0.49 per cent above the Bank of England base rate for the lifetime of the mortgage.

Unlike most other providers’ deals, which offer elements of flexibility, Abbey’s ‘Fix and Flex’ proposition combines all the features of Abbey’s Flexible Plus mortgage as well as the added benefit of being able to fix at the beginning of the deal.

Nici Audhlam-Gardiner, Abbey Head of Mortgages, said: "The current climate is an uncertain one and we know that uncertainty drives demand for fixed rate products, at least in the short term. However many people also want flexibility – to overpay, underpay, take payment holidays, and most importantly, offset their savings – and that is why we have launched this product.”

Benefits of the ‘Fix and Flex’ product are:

Offset against savings, which means you pay your mortgage off earlier
Can make overpayments to reduce your monthly payments
Can make underpayments and take payment holidays to suit your lifestyle
Available on repayment basis, interest only or a combination of the two
Eliminates the hassle and cost of having to remortgage frequently
Can be fixed for 6 to 12 months at the start of the mortgage
By offsetting the savings against the mortgage, you do not pay income tax on them

Nici Audhlam-Gardiner continued: “The deal has all the benefits of our most flexible mortgage (the Flexible Plus mortgage) plus the added bonus of being able to fix for 6 to 12 months at a competitive rate. Our ‘Fix and Flex’ product is perfect for people who are looking for a deal for life but want some certainty in the short term.”

Julia Harris, Mortgage Analyst at Moneyfacts.co.uk, comments: It's good to see a lender looking at the situation prospective borrowers are in and launching a mortgage, which reflects the current economic climate. The flexible features offered with this deal combined with the offset facility make this a unique product. Innovation has finally returned to the mortgage market!'

Customers who would like to find out more about the deal or apply should visit abbey.com/mortgages.