Abbey cuts rates on its tracker mortgages

Abbey is cutting rates on its two-year tracker and flexible mortgages by 0.1 per cent in response to the Bank of England's announcement today.

A spokesman for Abbey, said: "Abbey welcomes and supports the Bank of England's decision to broaden its range of accepted collateral. It is an important step in bringing greater liquidity to the market.

"We believe that this extra funding will, in time, reduce Libor and in anticipation of this we have decided to reduce rates on tracker and flexible deals by 0.1 per cent.

"We will continue to review the cost of funding and will look to reflect further changes in our mortgage range going forward. We hope other lenders will also act to support the stimulation of the mortgage market."