Abbey increase interest rates on fixed rate mortgages

Commenting on the increase in interest rates on Abbey's fixed rate mortgages, Louise Cuming, head of mortgages at price comparison site moneysupermarket.com, said: "While swap rates have risen by around half a per cent in the past month which could justify this hike, Abbey is only adding to confusion and volatility by reducing rates on fixed deals last week only to raise them again this week.

"When providers act with such disregard for consumer confidence, they aggravate the situation by driving more homeowners to a ‘wait and see' approach. Borrowers need to be regaining trust in providers and the housing market as a whole, or we will face the unwanted prospect of further market stagnation."