Abbey mortgage rates cut and two-year trackers return

Date:Tuesday 11th November 2008

Abbey mortgage rates have been reduced on two-year fixed-rate deals, while it has also re-introduced a selection of two-year tracker options.

The fixed-rate deals to be affected include a mortgage with a 60 per cent loan-to-value (LTV) at 4.49 per cent with a £995 fee.

In addition, deals for 70 and 75 per cent LTV will have rates of 4.54 per cent and 4.79 per cent, with £1,499 and £995 fees respectively.

Furthermore, the new range of tracker mortgage deals, available for loans of up to £250,000, start from 4.89 per cent with a £499 fee for a 60 per cent LTV and 4.99 per cent, with a £995 fee, for 75 per cent LTV.

Nici Audhlam-Gardiner, director of Abbey Mortgages, said rates could be "significantly cut" thanks to the base rate reduction.

Meanwhile, Coventry Building Society is reducing its standard variable mortgage rate from 6.84 per cent top 5.34 per cent.

The cut is already effective for new customers, while existing customers will experience it from December 1st.

Its tracker mortgage rates will also decrease by 1.5 per cent on the same day.