Abbey Reduce Mortgage Rates
May 16th, 2008 by 
Guy
Abbey has today reduced the rate on its flexible mortgage and tracker mortgage. Some fixed-rate products also reduced for customers with large deposits.
Abbey states it is making reductions to flexible and tracker rate mortgages in anticipation of further LIBOR falls in the near future.
All Abbey flexible and tracker rate mortgages will be reduce by 0.05%, following a 0.1% shortly after the Bank of England’s latest base rate cut.
However, as the base rate was cut by 0.25%, the 0.15% total cut widens the gap between base rates and rates paid by borrowers.
Fixed rates for borrowers with large deposits of over 25% have been reduced by up to 0.17%, with Abbey’s five-year fixed rate priced at 5.75%.
An Abbey spokesperson says: “Over the last two years, we have been carefully maintaining a balance between the profitability of new business, prudent lending criteria and our market share aspirations.
“Whilst current market conditions remain challenging, this sensible approach to risk has proved very resilient and allows us to reward lower fixed-rate LTV business with competitive rates.”
Posted in Mortgage news | 