Abbey cuts fixed and tracker mortgage rates

From Wednesday 14 January, Abbey is cutting rates by up to 0.3 per cent on its fixed rate mortgages. Abbey are launching market leading rates for 2, 3 and 5-year mortgages, at rates starting at 3.99 per cent, offering some attractive alternatives for customers who wish to lock in to the current low rates for the longer term - including fee-free options.

The new fixed rates are as follows:

2-year fixed rates:
3.99 per cent with a £995 fee for 60 per cent LTV
4.29 per cent with a £995 fee for 75 per cent LTV
3.99 per cent with a £1,995 fee for 75 per cent LTV

3-year fixed rates:
4.39 per cent with a £995 fee for 60 per cent LTV
4.69 per cent with a £995 fee for 75 per cent LTV

5-year fixed rates (remortgage options shown):

4.99 per cent with a £995 fee for 75 per cent LTV or with no fee in branch and by telephone for a limited offer period

Abbey is also reducing its 2-year trackers from Wednesday. The rates are as follows:

3.69 per cent with a £1,995 fee for 60 per cent LTV
3.89 per cent with a £995 fee for 60 per cent LTV
4.04 per cent with a £1,499 fee at 75 per cent LTV

Help for Homebuyers

To help first time buyers and those moving home, Abbey have removed the fee on our 5-year fixed rate 75 per cent LTV mortgage at 5.09 per cent. In addition this has the homebuyer solution, which includes a free valuation and £250 cashback. This is available in Abbey branches and by telephone for a limited offer period.

Nici Audhlam-Gardiner, Abbey Mortgage Director commented: "In 2009, Abbey remains open for business. Abbey have market-leading fixed rate products at 2, 3 and 5 years, allowing people to fix in at a low rate to guarantee certainty of their monthly payments. Abbey also remain committed to helping first time buyers and those looking to move, and have introduced a new product with no fee to help them."

For more information log on to abbey.com