Abbey cuts some mortgage rates

16 May 2008

Abbey is the second of the big lenders to reduce some of its mortgage rates

The Abbey has announced that it will be making slight reductions to some of its mortgage rates.

The lender is cutting all of its flexible and tracker rates by 0.05% plus cutting fixed rate deals for new borrowers with 25% deposits by as much as 0.17%.

On Tuesday of this week, another of the big lenders, the Nationwide building society, reduced some of its fixed rate products for new borrowers by as much as 0.3%.

The reductions have been made because the Abbey are expecting their borrowing costs to decrease as a result of the Bank of England lending more money to commercial banks.

“Abbey has already decreased rates on its flexible rate and tracker mortgages by 0.10% in response to the Bank of England’s recent cash injection,” said a bank spokesman.

“This additional 0.05% reduction anticipates future falls in Libor rates and will further support the Bank of England’s action in helping bring liquidity back to the UK mortgage market,” he added.

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