Abbey cuts mortgage rates

Abbey has cut rates on its two and three-year mortgage deals,

In the second set of rate reductions by the bank in ten days, rates on two and three-year fixed-rate deals will be cut by up to 0.15 per cent from Monday.

This means a two-year fixed-rate deal now starts from 6.34 per cent with a £999 fee while a three-year fixed-rate deal is available at 75 per cent loan-to-value with rates from 6.29 per cent.

Abbey is also introducing a new three-year fixed-rate deal at 70 per cent loan-to-value with a competitive rate of 5.99 per cent and a £1,695 fee.

Available for loans of up to £250,000 the bank claims the product is "marketing leading" even when the fee-adjusted rate is taken into consideration.

Phil Cliff, Abbey''s director of mortgages, said: "Abbey is committed to offering competitive deals and our strength in the mortgage market allows us to do this."

Earlier this week Norwich and Peterborough Building Society (N&P) introduced a new three-year tracker mortgage which tracks at 0.7 per cent above the Bank of England''s base rate of interest for three years before reverting to N&P''s standard variable rate.

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