Abbey announces rate cuts

Mortgage lender Abbey has announced that it is cutting rates on several of its products from today.

The company is hoping that the move, which affects its flexible, tracker and some two-year fixed-rate products, will help it to attract and retain customers.

Under the changes, the lender''s flexible and tracker rates are being cut by 0.1 per cent, while its two-year fixed rates are being reduced by 0.11 per cent.

Commenting on the move, a spokeswoman for Abbey Mortgages said the firm was "pleased" to improve its rates for borrowers in the UK.

She added: "We will continue to offer competitive products whilst still being careful to balance this against the need to maintain service levels for our customers given recent competitor moves."

In April, research by Abbey suggested that borrowers could be attracted to five-year fixed-rate products in the near future.

The study found that around 24 per cent of respondents would be interested in taking out such a product if they needed to remortgage tomorrow.

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