Abbey rates cut

Date:Friday 12th September 2008

Abbey rates are being cut for mortgage customers with smaller deposits.

Customers with a 15 per cent deposit will have their rates lowered by 0.6 per cent, as well as having five new deals made available.

Rates are also being slashed on some 75 per cent loan-to-value deals.

The fee system for mortgages of up to 85 per cent loan-to-value is also changing so that rather than being paid upfront, the whole fee can be added to the loan.

Previously, £150 of the fee had to be paid upfront and could not be capitalised.

Phil Cliff, director of mortgages, said that Abbey intends to offer "a range of competitive deals for all customers".

Earlier this month, Abbey rates were slashed by up to 0.3 per cent on its two, three and five-year fixed-rate mortgage deals.

It also reduced the rates on large loan products for people needing to borrow between £550,000 and £5 million.