Abbey announces lower mortgage interest rates

Abbey has announced it has interest rates on its mortgages for a number of its fixed rate products and has also added new deals to its range.

The bank''s three year fixed-rate mortgages have had their rates cut by 0.1 per cent and rates have also been cut on ten and 15 year deals.

Nici Audhlam-Gardiner, head of mortgages at Abbey, said: "Our three year range is looking extremely competitive at the moment, and someone moving from a competitors'' standard variable rate to that deal could be looking at a saving of £140 a month on their mortgage payments."

The news comes as the Financial Services Authority (FSA) warns consumers that over one million more mortgages are a cause for concern due to their risky lending characteristics.

In a report from the FSA it stated that a third of new mortgages which were approved between 2005 and 2007 had a high element of risk.

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