Abbey cuts rates on fixed and flexible deals

20 August 2008

Its flexible offset products have been reduced by 0.2%, and three-year trackers cut by 0.1%.

It has also cut its five-year fix low fee mortgage, by 0.2%.

Two-year fixes will start from from 5.89% at 70% LTV, with three-year fixes from 5.79% at 70% LTV.

In addition, all Abbey's flexible offset mortgages are reducing by 0.2%, so they now start from 6.23% with a £1,499 fee.

The flexible mortgage comes with a savings pot to allow borrowers to offset savings against the money owed, reducing the interest charged and helping to pay the mortgage off early.

Three-year tracker products are reducing by 0.1% at 75 per cent LTV, now starting from 5.79%, with a fee of £1,950.

Also, Abbey is reducing the rates on its fixed rate low loan, low fee mortgages, which are available for borrowing up to £150,000, starting from 6.04% for three years up to 6.29% with a £549 fee on a five-year fix.

Phil Cliff, director of mortgages at Abbey, says: "These reductions demonstrate our continued effort to offer customers an excellent deal, in particular our flexible offset mortgages, which now start at 6.23%, look very competitive."