Abbey details fixed-rate mortgage offerings

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Financial services provider Abbey has revealed its latest range of fixed-rate mortgages.

Customers may now receive fixed-rate mortgage deals of up to five years through a stepped increase in the interest rate payable.

First-year payments on the new deal incur a rate of 2.99 per cent, which increases to 6.2 per cent in the second year and rises further to 6.35 per cent in years four and five.

Abbey explained that it has seen strong preference for fixed-rate mortgages among many of its customers.

Nici Audhlam Gardiner, head of mortgages at Abbey, said: "First-time buyers in particular are looking for more repayment security."

"They are more likely to be borrowing at the top end of their affordability levels," she added.

Some 87 per cent of first-time buyers opted for a fixed-rate mortgage in February, according to new figures from the Council of Mortgage Lenders.

Overall, fixed-rate products accounted for 76 per cent of all house purchases in the month, matching the all-time-high market share previously achieved in October 2005.

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