Abbey reduces rates on long term fixed rate mortgages

Abbey has announced new rates on a number of its long term fixed rate mortgages that will come into effect on Friday 5 October.

Abbey’s 5 year fixed rate mortgages have been reduced by up to 0.36%, due to a fall in long term swap rates. 10 year fixed rate mortgages have gone down by up to 0.25%.

Long term fixes looking popular

In response to the question ‘what would you choose if you were to remortgage tomorrow’, a significant 39 per cent of respondents said they would opt for a longer-term fix. Of the longer term fixed rate options, 10 year fixes were the most popular.

Sue Hayes, Abbey Director of Mortgages, said: "Now is a good time to take out a long term fix. With the current uncertainty in the money markets, we found that nearly 40 per cent of homeowners would choose at a 5 year fix or longer if they were to remortgage tomorrow. What’s more, with providers like Abbey bringing their rates down, these long term products are looking particularly competitive.”