Abbey launches fix & flex mortgage

Abbey's new fix and flex mortgage package is a long-term deal, allowing customers to fix the rate when they take out their mortgage, then to have a variable rate when it becomes more competitive.

Mortgage customers can choose to have a fixed rate for six or 12 months, depending on their perceptions of the market. This rate will be 6.09 per cent or 6.14 per cent respectively, after which it will have a variable rate set 0.49 per cent above the Bank of England's base rate.

It is hoped the new mortgage will offer customers greater flexibility in payments.

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."