Abbey Mortgages makes rate cut

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Abbey Mortgages makes rate cut

Thu 21st Feb 2008

Abbey Mortgages announced today that it is reducing the rate on its core two-year fixed-rate deal purchased through intermediaries by 0.2 per cent, to 5.39 per cent, with a £1,499 fee.

The bank is also introducing a number of special offers on its remortgage and homebuyer solutions, which offer legal and valuations services.

Currently the remortgage solution on Abbey's three-year fixed-rate deal is also being offered at 5.39 per cent, meaning customers receive legal and valuation services for free.

It believes longer-term fixed-rate mortgages are looking strong in the current market and is holding rates on its five-year range at 5.65 per cent, with a £499 fee.

From Friday the best deal offered on an Abbey two-year tracker rate mortgage will be 5.74 per cent, 0.49 per cent above the base rate, as the bank raises rates on its tracker mortgages by 0.20-0.25 per cent.

Nici Audhlam-Gardiner, head of Abbey Mortgages, said: "In the current market, certainty seems to be what a lot of people want, so we're driving down the costs on our fixed rate deals."

Abbey revealed today that as economists' predictions over the future of the UK economy fluctuate, homeowners looking to remortgage are increasingly confused about the best deals.

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