Abbey and Halifax cut fixed rates by up to 0.2%

Abbey for Intermediaries is to reduce its two-year fixed rate products at 60% and 75% loan-to-value by up to 0.2%.

The changes, which AFI will reveal today, take effect from today and include mortgages in the lender’s loyalty range.

The lender is also withdrawing its two-year tracker homebuyer product at 90% LTV and its five-year fixed rate homebuyer product at 90% LTV.

Halifax is also reducing its three-year 90% LTV fixed rate product for homebuyers by 0.2% and is withdrawing its two-year 90% LTV fixed rate for homebuyers temporarily.

Lea Karasavvas, managing director of Prolific Mortgage Finance, says: “We have not seen a reduction in fixed rates from the big mainstream lenders for a while. And with a lender like Abbey making these changes, hopefully other lenders will follow suit.”