Abbey defends fee on large loan mortgage

Abbey has defended the Ј9,999 fee on its large loan mortgage, with a 5.59% rate. Ricky Okey, managing director of Abbey for Intermediaries, says: “We endeavour to provide our customers options that are suitable for their individual circumstances. “For some it is a low rate with higher arrangement fee - large loans in particular tend to find this option works for them.

“For others a minimal fee is preferable at the expense of securing the cheapest rate - for instance first-time buyers who are trying to avoid upfront costs. “It’s all about offering the customers a choice.” Abbey says many of its competitors charge a percentage fee on large loans and points out that on a Ј750,000 mortgage a 2% fee is Ј15,000, which is substantially its own flat fee.

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