Abbey announces rate reductions on fixed-rate deals

Abbey has announced plans to reduce interest rates by up to 0.1 per cent on a number of its fixed rate mortgages.

The change will be introduced this Thursday (December 20th) and sees the lender cut rates on both short and long-term fixed-rate deals.

Two and three year fixed-rate deals for the homebuyer solution are to see their rate cut to 5.89 per cent, while the five year rate with re-mortgage solution will fall to 5.79 per cent.

Amendments to longer term rates include a series of cuts to ten year fixed term mortgages including a new rate of 5.64 per cent for the core product, 5.94 per cent for the homebuyer solution and 5.74 with the re-mortgage option, while the rate on the 15 year deal falls to 5.64 per cent.

Nici Audhlam Gardiner, Abbey head of mortgages, said: "Customers looking to fix during this uncertain period will benefit from a 0.1 per cent cut in rates on a number of our most popular fixed rate products. Our long term fixes are looking extremely competitive with 10 or 15 year deals starting from as little as 5.64 per cent."

Abbey recently launched a new Fix or Flex mortgage product, giving homeowners the option to keep to a fixed rate deal for the first six or 12 months of their mortgage before reverting to a flexible rate of 0.49 per cent above the base rate for the remainder of the mortgage lifetime.

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