Abbey announces mortgage rate reductions

Abbey has reduced rates on some of its fixed-rate mortgage products.

All flexible and tracker mortgages from the company will now promise a rate that has been reduced by 0.05 per cent and its five-year fixed-rate deal now boasts a 5.75 per cent rate.

And rates for mortgage products in the 75 per cent loan-value range will be dropped by 0.17 per cent, Abbey stated.

The purpose of the cuts is to give customers “value and choice”, a spokesperson for Abbey Mortgages commented, adding: “The current mortgage market poses an opportunity for financially strong lenders such as Abbey.

“Last month we announced a UK net lending share of 16 per cent and since then we’ve seen an exceptionally strong pipeline of new business.”

Furthermore, the current mortgage market is “competitive and dynamic”, the spokesperson added.

Earlier this month, the Bank of England voted to hold the interest rate at five per cent, but any further reductions later in the year could mean rates on tracker mortgage products will fall.

© Adfero Ltd

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