Abbey, a savings and mortgage services provider, is planning to add Fix and Flex range of mortgages, which will allow customers to fix at the start of the mortgage, then revert to a competitive variable rate for the remainder of the mortgage term.
Abbey’s Fix and Flex proposition will combine 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. When the fixed period ends, the rate reverts to 0.49% above the Bank of England base rate for the lifetime of the mortgage.
The Fix and Flex product will offer offset against savings, which means you pay your mortgage off earlier. It also facilitates to make overpayments to reduce your monthly payments and to make underpayments and take payment holidays to suit your lifestyle. The mortgage is available on repayment basis, interest only or a combination of the two. It will eliminate the hassle and cost of having to re-mortgage frequently.
Nici Audhlam-Gardiner, head of mortgages at Abbey, 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.