Abbey mortgage rates cut

Date:Thursday 20th November 2008
Author: Susanna Kavka

Abbey mortgage rates have been reduced on its three-year fixed-rate deals.

Nici Audhlam-Gardiner, Abbey mortgage director, said that the new offers enable borrowers to "lock into market-leading rates for two and three years".

The new mortgage rates start at 4.99 per cent for a 60 per cent loan-to-value (LTV) deal, which carries a £995 fee.

Also among the new offers is a 75 per cent LTV option, for a maximum of £150,000.

It has a fee of £549 and the rate is 5.39 per cent.

Ms Audhlam-Gardiner added that customers wanted "longer-term certainty of their monthly payment".

In related news, the minutes of the meeting in which the Bank of England cut the base rate by 1.5 points earlier this month have been released.

They show that an even greater reduction, of two points, was considered, but refused as it was thought that it would be too shocking for the money markets.