FTAdviser.com

Advertising

Lender says...

Abbey has cut the rates on some of its two and three-year fixed rate and tracker mortgages by up to 10 percentage points.

It has also reduced the fees on its two and three-year 5.98 per cent fixed rates by £500 and by £400 respectively.

The news follows the rate reductions made last month of between 10 percentage points and 15 percentage points. Abbey has also reduced the rates on its five-year fixed rate products by 30 percentage points.

These cuts mean a two-year tracker at 75 per cent loan-to-value now starts from 5.89 per cent with £995 fee and two and three-year fixed rate products, both with and without free legals and valuation, now start from 6.19 per cent with £995 fee.

Adviser says...

Ronan Marrion, a mortgage adviser for Truro-based IFA Worldwide Financial Planning Limited, said: "This is welcome news to intermediaries and consumers alike at a time when most lenders are increasing fees and keeping their rates high. 

"Abbey are passing on the well publicised cut in swap rates, which is great to see. Hopefully we will see these reductions in the products for loans at more than 75 per cent loan-to-value in the coming months although in the face of further falling house prices this would seem unlikely."

Rating: 4/5 stars

For more information see Mortgage Adviser online-only edition.