Abbey improves fixed rate mortgages

Abbey have announced reduced mortgage interest rates for a number of their fixed rate products, while also adding a series of new offerings to its range.

The lender's entire range of three-year fixed rate mortgages have had their rates cut by 0.1 per cent, while it has also reduced rates on its ten and 15-year deals, as well as on some of its three-year products.

At the same time, the bank has unveiled a new three-year fixed rate mortgage and a three-year tracker product, with both products offering initial mortgage interest rates of 4.99 per cent.

To add to its new range, there are also new two and five-year fixed rate mortgages available for a loan-to-value of 75 per cent or below, with interest rates of 5.62 per cent and 5.63 per cent.

"Our 3-year range is looking extremely competitive at the moment, and someone moving from a competitors' standard variable rate to that deal could be looking at a saving of £140 a month on their mortgage payments, claimed the head of mortgages at Abbey, Nici Audhlam-Gardiner.

“We think the new stepped product will also prove popular, particularly with existing mortgage holders coming to the end of the deals they fixed in at two years ago," she added. "We also think it might help first time buyers who want to reduce the costs of their mortgage in the first year."

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