Abbey mortgages update regarding base rate cut

Date:Friday 6th February 2009
Author: Max Freedman

The situation regarding Abbey mortgages in light of the reduction in the base rate has been detailed by the lender.

Abbey said that from March, tracker mortgage rates would mirror the 0.5 per cent reduction, as would flexible deals.

It also said that it is reviewing its standard variable rate, currently 4.69 per cent, as well as its savings rates.

Tracker mortgages remain on sale from the lender and it said that should any changes to this range be made, they would be announced "in due course".

When the Bank of England monetary policy committee cut the base rate to one per cent, Abbey chief economist Barry Naisbitt said that consumer and business confidence ought to be helped by the move.

He also observed that few people would have foreseen such a reduction six months ago.

"The past few months have clearly seen a series of extraordinary measures, reflecting the rapidly deteriorating economic and financial situation in the UK and globally," Mr Naisbitt commented.