Abbey has a new offering that those looking for a competitive fixed rate mortgage may be looking for. It is a four year fixed rate mortgage that has an 85% LTV (Loan To Value) ratio and at a rate of 5.99%.

If you want to take advantage of this deal, simply stop by an Abbey branch or contact one of their representatives by phone. This is for house purchasers and those interested in a remortgage.

There is a 995-pound fee that applies to this loan however there is a free valuation. The company throws a 250-pound cash back on completion. On the other hand, a Remortgage Solution offers free valuation and free legal work for the customer.

Abbey is also starting a four-year-fix if you are a customer with an existing account which comes with a rate of 4.99% and no fee.

There is also a similar plan that is in effect that comes with a 75% LTV over the telephone and through branches of the lender.

The company is also offering another plan that comes with a three-year fix at 4.59%. It has a fee of 495-pounds and is available with a 75% LTV. This is for remortgage customers. You must also be a member of the staff at UK universities. It is sponsored by the Santander Universities programme.

There’s no telling how long these offerings will be made available, so you should contact Abbey as soon as possible to take advantage of them.

Home buyers are often known for seeking their own loans through certain banks and others that service this particular area. There are some however, that see the usefulness of going through loan brokers so that they can get the best deal.

According to the Council of Mortgage Lenders (CML), the latter seems to be the way many future homeowners are attempting to get their loan, this according to information that has been supplied by the Financial Services Authority. This accounts for roughly sixty-percent of the public for the first quarter of 2009. This is roughly the same number that accounts for the last quarter of 2008.

Many of the lenders are tending to offer their products in the fashion due to the credit crunch and some of the pre-qualification efforts that goes into the brokerage industry. Buyers also like some of the service levels and expertise that some of the brokers have when it comes down to matching them with the loan that they need.

Numbers have increased in the number of brokers being used and it seems that first-time buyers are more likely to use a broker than those who are looking to remortgage, find a second home or simply looking to move from one location to another.

According to Peter Williams, executive director of the Intermediary Mortgage Lenders Association, “People value the service that the mortgage broker provides.” It’s one of the main reasons that many people go looking for a mortgage broker to use instead of doing the rate shopping themselves.

Mortgage brokers still have a job to do, as the number of products available on the market is less than it was at one time when the housing industry was at its peak and there was a large number of lenders on the market willing to do business.

The Moneyfacts Treasury Report has found something significant when it comes to the life of mortgage products available to consumers. During the month of June, 2009, the products fell from 23 days to 14.

These monthly figures are compounded monthly and take a look at trends in the market in the United Kingdom and are lately reporting on some of the turbulent and volatile conditions that are taking place right now.

The shelf life of these mortgage have been falling over the last few months and this could be because of a couple of reasons. One may be escalating fixed mortgage rates. Another reasons is that lenders change the products when they become too marketable.

According to the report, there is a practice of lenders who change the rates on their loans which in turns cuts the shelf life of that particular product. The actual number of products was 1,299 which was a growth of 33 in one month time period.

Darren Cook, an analyst at Moneyfacts commented that, “It is bad news for consumers that mortgage deals are only appearing in the window for such a short period and there are only a limited number of cheaper deals available and before the consumer has a chance to look at them a second time, they are gone.”

He continued, “LIBOR and SWAP rates are continuing to prove unpredictable and I would not be surprised if the shelf life is cut even further during the next few months.

In closing, he said, “When the Bank of England cut interest rates by a total of two and a half per cent within two months back in November and December last year, the shelf life fell to only six days, which is less than the life of a pint of milk.”

Rip-off banks and building societies are pushing up the best mortgage interest rates despite the cost of borrowing between lenders hitting the lowest level for more than 20 years.

The Council of Mortgage Lenders claims that the cost of borrowing was a more  “complex jigsaw” and not solely set by LIBOR.

“It is misleading to assume that higher fixed rates simply reflect a desire to increase profitability,” a spokesman said.

To find the best interest rates for first time buyers, consider trying a mortgage comparison web site like this one.

If you want the key to your front door by buying your own home, you need to think carefully about what is involved in making probably the biggest personal financial commitment you will ever sign up to.

Why take out a mortgage?

Despite the property market doldrums we’re experiencing now, historically a mortgage has proved to be an excellent investment that has outperformed most other investments year-on-year. The advantage over renting is your mortgage repayment is a personal investment in an asset that is appreciating in value.

Your commitment to a lender

Your responsibilities and obligations are laid out in detail in the terms and conditions your lender sends you together with the mortgage offer. This may vary slightly between lenders, but generally, you are responsible for making mortgage regular mortgage repayments, insuring the property and maintaining the property in a reasonable condition.

Repaying your mortgage

The typical methods of repaying a mortgage are:

Repayment mortgages: This is a monthly payment that is part interest on the loan and a contribution towards reducing the loan, so at the end of your loan term you have repaid the all the interest and the amount you have borrowed

The loan term is of time over which you have to repay the loan, for example 25 years.

Interest only mortgages: You pay the interest on the loan each month, but none of the money you have borrowed. Borrowers need to make some sort of provision for repaying the loan amount at the end of the term, generally through some sort of savings plan.

Don’t forget mortgage rates rise and fall, so you need to include a contingency in your budget for higher repayments.

What happens if I can’t repay my mortgage?

A mortgage is secured against your home. This means if you fail to keep up the repayments, the mortgage lender can repossess the house. This is a last resort measure after you and the lender have tried every other means to sort out any financial problems.

Mortgage protection insurance from a specialist provider is a worth considering as a stopgap if you lose your job or can’t work through sickness or injury.

The government has a scheme to help borrowers in trouble with their mortgage repayments. This covers paying the interest on a mortgage of up to £200,000 and starts 13 weeks after redundancy.

What else should I consider?

You need to think about the mortgage product that suits you best – common products are tracker mortgages that rise and fall with the interest rate and fixed rate mortgages that allow you to pay a fixed monthly payment for a specific term.

How an independent broker can help

Mortgages are complicated and making a wrong choice can cost you a lot of money over the years. A specialist, independent mortgage broker will have an in-depth knowledge of the mortgage market and special relationships with some lenders.

The broker will discuss your options and provide a list of mortgages from different lenders that match your requirements so you can make an informed choice.