Abbey cuts mortgage rate by 0.25 per cent

  • Story by: Sharon Flaherty
  • Magazine: FTAdviser
  • Published Wednesday , April 16, 2008

Abbey has followed in the footsteps of other lenders and reduced its standard variable mortgage rate (SVR) by 0.25 per cent.

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The reduction reflects the Bank of England base rate cut of 0.25 percentage points last week, which brought interest rates down to 5 per cent.

The rate for new customers who want a tracker or flexible deal has been cut by between 0.12 per cent and 0.25 per cent.

Abbey has also made changes to its savings and mortgages range.

It is maintaining its Fixed Rate Monthly Saver at 7.25 per cent, its E-Saver Direct at 6.5 per cent and its 50+ Saver paying up to 6.5 per cent.

Details on all other products will be announced shortly, but Abbey said none will be cut by more than 0.25 per cent.

A spokesperson for Abbey, said: "Despite the current market turmoil and high cost of funding, Abbey is committed to ensuring customers receive the benefit of the base rate reduction."

The change to SVR for existing customers, and savings rates for new and existing customers, take effect from 1 May.

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