Lender reduces mortgage fees

One of the UK''s leading mortgage lenders has cut fees on several of its products.

Abbey has announced that the fees on its flexible mortgages, which have rates beginning at 6.43 per cent with a 75 per cent loan to value, will be reduced by £1,000 to £1,499 from tomorrow.

It has been claimed that the products may be useful to those looking for the freedom to make overpayments, underpayments and take payment holidays on their mortgage.

Discussing the decision, Abbey''s director of mortgages Phil Cliff explained how the company was able to make the reduction.

He said: "The strength of Abbey''s mortgage business - backed by Santander - allows us to consistently offer customers good mortgage deals."

Earlier this week, the Co-operative Bank introduced a new fee-free three-year tracker mortgage for all of its current account customers.

The product includes early repayment charges and also allows borrowers to choose whether they want to make overpayments or underpayments on the loan.

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