Abbey cuts fixed rates and re-introduces two-year trackers

Abbey has slashed headline rates on its most popular two-year fixed rate deals by up to one per cent. The market leading deals now start from:

4.49 per cent with a £995 fee for 60 per cent LTV
4.54 per cent with £1,499 fee for 70 per cent LTV
4.79 per cent with a £995 fee for 75 per cent LTV

In addition Abbey will re-enter the market with a range of two-year base rate trackers on Wednesday. The lender is the first to re-enter the market since all the major providers withdrew their tracker ranges late last week following the Bank of England base rate cut.

Abbey's new range of two-year trackers, which have a collar of 0.0001 per cent and are available for loans up to £250,000, start from:

4.89 per cent with £499 fee for 60 per cent LTV
4.99 per cent with £995 fee for 75 per cent LTV

Nici Audhlam-Gardiner, Director of Abbey Mortgages, said: "The base rate cut has eased the pressure on swap rates, particularly two-year swaps, which means we can significantly cut rates on our two-year fixed rate mortgage range. In addition we're the first lender to reintroduce a range of two-year base rate trackers, which will be on sale from Wednesday morning."