Abbey cuts mortgage rates

Abbey has joined a number of mortgage lenders in cutting interest rates, giving homeowners cause for optimism.

The Spanish-owned bank, which is the UK's biggest lender, has cut some of its rates by up to 0.1 percentage points, following a similar cut last Friday.

These reductions mean that with a £995 fee a two-year tracker mortgage starts from 5.89 per cent and a three-year fixed rate products begin at 6.19 per cent.

Phil Cliff, Abbey's head of mortgages, explained that customers could benefit from these rate reductions thanks to "market movements and our mortgage strength".

Abbey is also extending the maximum loan size it is willing to offer to £5 million, up from a previous limit of £550,000, signalling greater faith in the market.

Earlier this week, HBOS revealed that it is cutting its inertest rates for the tenth time this year - cutting as much as 0.38 percentage points from specific deals.

UK Property News posted on 06/08/2008 14:29:20