Abbey tweaks mortgage rates
Thursday, 21 Feb 2008 12:00
Abbey is offering new deals for remortgagers but tracker rates are being hiked in the latest raft of changes to its mortgage range.
The bank's core two-year fixed rate deal, available through intermediaries, is undergoing a rate cut of 0.2 per cent and is now at 5.39 per cent. The deal comes with a £1,499 fee.
Meanwhile Abbey's three-year fixed-rate deal, available as a remortgage package, is being offered at the same rate as the core product – 5.62 per cent – which means borrowers will receive free legal and valuation services.
However, Abbey also announced it tracker mortgage rates would be going up by between 0.20 per cent and 0.25 per cent. The move has been made, said Abbey, to "reflect current market and recent competitor moves".
Abbey highlighted its two-year tracker rate mortgage at currently 5.74 per cent, 0.49 per cent over the Bank of England base rate, as being its best deal. The product comes with a £999 fee.
Nici Audlham-Gardiner, head of Abbey Mortgages, said: "In the current market, certainty seems to be what a lot of people want, so we're driving down the costs of our fixed-rate deals. Our two-year fixes will start from a great rate of 5.39 per cent and five-year deals are also looking extremely competitive."