Home >
UK property >
Fixed-rates continue to fall

Fixed-rates continue to fall

Wednesday, 20 August 2008 12:00 AM

Abbey has announced it will cut the cost of fixed-rate mortgage borrowing further, with a reduction in the cost of two and three-year deals.

From Thursday, August 21st, Abbey is reducing the rate on its two and three-year fixed-rate mortgages by up to 0.25 per cent.

Under the new deals a two-year fixed-rate mortgage with the lender will come from 5.89 per cent, at a 70 per cent loan-to-value ratio (LTV).

For borrowers requiring 75 per cent LTV, the cost will rise to 5.99 per cent. A £995 fee will also be charged on both deals.

A three-year fix will come from 5.79 per cent, again up to 70 per cent LTV, with a £1,295 fee.

In addition, all Abbey's flexible offset mortgages are reducing by 0.2 per cent, so they now start from 6.23 per cent with a £1,499 fee.

The flexible mortgage comes with a savings option to allow borrowers to offset savings against the money owed, reducing the interest charged and helping to pay the mortgage off early.

"These reductions demonstrate our continued effort to offer customers an excellent deal, in particular our flexible offset mortgages, which now start at 6.23 per cent, look very competitive," said Phil Cliff, Abbey's director of mortgages.

Abbey also confirmed the cost of three-year tracker products will be reduced by 0.1 per cent at 75 per cent LTV, now starting from 5.79 per cent, with a fee of £1,950.

Chris O'Toole