I found it quite bizarre when in my inbox dropped an email with a limited 7 day offer on some mortgage rates from Abbey.
It’s the kind of marketing I’d expect from a closing down furniture shop!
A 7 day only offer on a mortgage product?! Is this the shape of things to come?
Now what could the reason be for such a limited time offer…?
Are Abbey a bit worried they’ll get mobbed with applications and struggle to handle the enquiries if they open the offer up for longer?
Or do they only have access to a limited amount of money to lend and they calculate 7 days is about the life expectancy of the funds in the current climate?
Will they run it for 7 days, process the enquiries and then run it again a few weeks later…?
I have no idea.
What I do know is how the offers compare to others:
Abbey’s 7 day offers are:
2 year fixed – 2.89% – 75% LTV – £995 booking fee (can be added to loan) MAX LOAN £1m – Completion deadline: Sept 30th 2011 Available to remortgage and purchase customers with free valuation and legals / £250 cashback
2 year tracker – <1.99% – 70% LTV – £995 booking fee (can be added to loan) MAX LOAN £1m NO COMPLETION DEADLINE (Offer valid for 6 months) Available to remortgage and purchase customers with free valuation and legals / £250 cashback
The thing to pay attention to here is the LTV (Loan to Value).
There are better deals at lower LTV’s but at comparable LTV’s to those above, I’ve had a little look around and the best comparable Fixed rate I can find is a:
2.99%, 2 year, fixed deal from the Yorkshire Building Society with a £995 fee up to an LTV of 75%.
So, just from a quick scout around the Abbey deal looks pretty good.
As far as the Tracker is concerned, once again the Yorkshire Building Society have a rate of:
2.39% for 2 years (and they go up to 75% LTV) with a £995 fee.
So once again, the Abbey offer looks like it could just pip the competition and top the charts for a week.
If you can find them and they are right for you…. get some proper advice before deciding what to do…. but alas, you don’t have long to decide!
Or do you… They might do it all again in a few weeks!