Abbey Mortgages, a UK-based division of Spanish banking giant Santander, has launched a new range of mortgages 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, as well as mortgage valuation and booking fees.
Abbey estimates that a typical home mover can save GBP2,000 in fees and charges by taking out one of its no upfront costs mortgages. Legal fees account for approximately GBP1,400 of that saving.
Consumers who opt for one of the new mortgages on offer can also benefit from significant discounts on removal costs and payment care, plus cash back 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% loan to value.
The launch of the new range comes amid speculation that increasing numbers of UK mortgage lenders are set to withdraw fixed-rate products due to growing concern that the Bank of England will raise interest rates in May.
According to The Guardian, 11 lenders have recently increased their fixed rates by up to 0.3%, while various companies, including Alliance & Leicester, Skipton Building Society and Portman Building Society, have already pulled some or all of their fixed-rate products.