Abbey mortgage rates rise again

www.moneynews.co.uk > Mortgages > Abbey mortgage rates rise again

Abbey mortgage rates rise again

Thu 29th May 2008

Abbey has raised the rates on some of its fixed-rate mortgages by up to 0.56 per cent, reversing the cuts it made only a week ago.

The biggest increases were on short term fixed-rate deals, with the rate on three year products rising from 5.93 to 6.49 per cent.

Abbey blamed a "dramatic increase" in swap rates, which have grown due to speculation that the Bank of England may be forced to raise the base rate due to rising inflation.

In a statement, the bank said: "As a result of our strong position in the market, we were able to reduce fixed rates last week, but the market changes have required us to pass on these increases."

Louise Cuming, head of mortgages at Moneysupermarket.com, criticised Abbey's decision, saying it was only fuelling "confusion and volatility" in the markets.

Related News : Mortgages
	Brits 'failing to grasp the importance of an interest in mortgages'
	BBA highlights mortgage lending growth
	Are interest-free mortgages a bad idea?
	Buy-to-let mortgages are 'more profitable'
	House price performance to impact lenders' criteria
	More Brits 'to choose long-term mortgages'
	Offset mortgages 'are the future'
	UK house prices 'set to fall'
	Hybrid mortgages 'are a good deal' for FTBs
	UK public expects house price increase

Related News : Santander
	FSA fines Santander 1.5m
	Santander launches new fixed rate Isas
	Santander launches upfront interest bond
	Contactless banking 'still has some way to go'
	Santander reveals updated fixed mortgage rates
	Confidence of first-time buyers increases, suggests survey
	Santander launches fixed-rate mortgage range
	Third of parents would pay extra for school catchment property
	Santander offers first monthly cashback credit card
	Bank of England maintains bank rate at 0.5 per cent