Abbey cuts mortgage fees

Abbey has the cut the fees it charges on its flexible mortgages.

The bank has announced that from tomorrow the cost of taking out a flexible home loan, which allows customers to make overpayments or underpayments, will drop from £2,499 to £1,449.

Last week rates for Abbey’s tracker mortgages were also cut, despite other lenders’ recent increases.

Director of mortgages Phil Cliff said: “The strength of Abbey’s mortgage business allows us to consistently offer customers good mortgage deals.”

The move comes as Bradford & Bingley, First Direct and the Co-operative bank are all raising their fixed-rate mortgage rates in attempts to protect themselves from the credit crunch.

Bradford & Bingley upped interest by between 0.5 and 0.7 per cent along with increases in a range of other mortgage products.

The Co-op increased its three-year and five-year deals by 0.7 per cent and 0.9 per cent respectively, while First Direct’s two-year rate was raised by 0.1 per cent to 6.15 per cent.

© Adfero Ltd

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