Abbey 3 year fixed mortgage rates cut by up to 0.5%

20 November 2008 / by Rebecca Sargent
Abbey has taken the mortgage lead as it becomes the first lender to reduce the rates on its three year fixed rate mortgages by up to 0.5 per cent, since the base rate fell to just three per cent.

Customers in search of a three year fixed rate mortgage deal can, from Friday November 21, expect a 60 per cent LTV package from Abbey mortgages with a rate of 4.99 per cent and a fee of £995.

The maximum LTV available with Abbey's three year fixed rate mortgages is 75 per cent, and when this is a maximum of £150,000, the interest rate stands at 5.39 per cent, with a fee of £549.

The news follows several announcements from Abbey regarding its mortgage range after the Bank of England's shock interest rate decision. The bank, which is part of the Spanish Santander Group, first announced it would pass the full cut onto its Standard Variable Rates (SVR), cutting it from 6.94 per cent to 5.44 per cent.

The banking group then cut the rates on its two year fixed rate mortgage range to a low of 4.49 per cent, and became one of the first to re-introduce its tracker mortgages range to the market, with rates of 4.89 per cent.

Commenting on Abbey's revised mortgage range, Nici Audhlam-Gardiner, director of Abbey mortgages, said: "We now have a range of very competitive fixed rate mortgages, allowing customers to lock into market-leading rates for 2 and 3 years.

"We know from our customers that competitive rates and gaining longer-term certainty of their monthly payment is most important. We have been able to respond by offering borrowers very competitive rates starting from 4.99 per cent."

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