Abbey fixed rates cut

Date:Wednesday 10th December 2008
Author: Rachel Fletcher

Abbey fixed rates have been reduced while new ones have also been launched.

Fixed-rate mortgage deals with the lender have been cut by as much as 0.6 per cent, while other reductions are being made on 85 per cent mortgages for first-time buyers and those moving home.

Abbey is also relaunching its two-year tracker mortgages, with rates that have decreased by as much as 0.9 per cent.

They are available for 60 to 75 per cent loans-to-value (LTVs).

One deal, for a 60 per cent LTV with a £1,995 fee, carries a rate of 3.99 per cent.

In related mortgage news, the Homeowners Advice Centre recently warned that rises in repossessions could transform "previously pleasant areas into ghetto-like estates".

Adviser Al Elliot blamed easy lending in recent times and said homeowners "simply went 'overdrawn' on their mortgage account".

He said that falling property prices and the economic downslide meant overpayments could not be made.