The product, which is available up to 75% loan-to-value, has a minimum loan size of £25,000 and a maximum of £1m.
Abbey for Intermediaries managing director Miguel Sard said: “Our new lifetime tracker deal is designed to appeal to borrowers who like the flexibility of a tracker deal but want the peace of mind of a lifetime tracker rate, and we are pleased to enhance our range with this great new product.”
The product rate is based on the Bank base rate plus 2.19%. There is a £495 fee.
The news comes as Legal Marketing Services director Andy Knee urged remortgagors to take advantage of cheap deals before it was too late.
Santander’s latest entry into the low rate lifetime mortgage market has failed to beat the low rates of First Direct and HSBC.
However, Moneyfacts financial researcher Rachel Springall said the product had lower fees than First Direct and unlike HSBC, did not require the borrower to hold a current account: “Abbey have got a decent package and borrowers are likely to be attracted particularly because of the low fee.”
