Abbey cuts rates on fixed rate deals and launches new stepped products

From Wednesday 23 January Abbey Mortgages is cutting rates on a number of its fixed rate deals and adding more products to its range.

Reductions on fixed rate

Abbey’s entire range of 3-year fixed rate mortgages will have rates cut by 0.1 per cent making them ‘best buy’ among all the major high street lenders. Rates start from 5.62% with £999 fee.

10 and 15-year fixed rate deals are also improving – some by 0.25 per cent. Rates start from 5.59 per cent with £999 fee.

Abbey has also cut rates on some of its popular 2-year fixed rate products. The lowest 2-year fix in the range is now 5.67 per cent with £999 fee.

New products

Abbey is introducing a 3-year fixed rate stepped product starting at 4.99 per cent in year one, 5.69 per cent in year two, and 6.39 per cent in year three, with £499 fee

In addition, Abbey is launching a 3-year tracker stepped product at 0.51 per cent below Bank of England base rate in year one (currently 4.99 per cent), 0.29 per cent above base rate in year two, and 0.99 above base rate in year three

A new 2-year fixed rate range for 75 per cent loan-to-value or below is being introduced, starting at 5.62 per cent with £999

A new 5-year fixed rate range for 75 per cent loan-to-value or below is also being launched, offering 5.63 per cent with £499 fee and including additional benefits such as our remortgage solution

Nici Audhlam-Gardiner, Head of Mortgages at Abbey, comments: “We’re really pleased to be in a position where we can cut rates on our 3-year and longer-term fixes. Our 3-year range is looking extremely competitive at the moment, and someone moving from a competitors’ SVR to that deal could be looking at a saving of £140 a month on their mortgage payments.”

“We think the new stepped product will also prove popular, particularly with existing mortgage holders coming to the end of the deals they fixed in at two years ago. The starting rate of 4.99 per cent will help them to avoid a big rate shock on remortgaging. Beyond year one, the steps are very manageable, helping customers to budget over a longer period. We also think it might help first time buyers who want to reduce the costs of their mortgage in the first year.”