Abbey cuts mortgage rates

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Abbey has announced that it is reducing interest rates on several of its products.

The mortgage provider, which is one of the biggest in the UK, is cutting rates on its two and three-year fixed deals by around 0.15 per cent.

It has also revealed it is introducing a new three-year deal which features a 70 per cent loan-to-value, a £1,695 fee and a rate of 5.99 per cent.

Phil Cliff, Abbey's mortgage director, stated that the strength of the mortgage market had allowed the company to make the moves.

He said: "These rate reductions are the second set that Abbey has made in just ten days. What's more, we've added another market leading deal to the range.

"This three-year fix has a rate of just 5.99 per cent and even when the slightly higher fee is accounted for, it is still best in market."

Last week, Liverpool Victoria announced it is launching a new lifetime mortgage product with a fixed rate of 6.95 per cent.

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