Abbey cuts mortgage rates

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Abbey has announced further cuts to its fixed-rate mortgage products, cutting the rate on its five-year deals by 0.3 per cent.

The bank's three-year tracker products at 75 per cent loan to value are being slashed by 0.1 per cent, with rates now as low as 5.89 per cent.

Furthermore, Abbey's two and three-year fixed mortgages will see their fees being cut by £500 to £995 and by £400 to £1,295 respectively.

Phil Cliff, Abbey mortgage director commented: "This is the second time in two weeks that we have cut rates and now we're cutting fees as well to offer customers a great deal. This follows our announcement of our strong performance in the mortgage market for the first half of the year."

Last week, Abbey cut the rates on a number of its two and three-year fixed-rate and tracker mortgages by up to 0.1 per cent.

At the same time, the bank launched a new range of low-fee mortgages for people borrowing less than £150,000.

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