Abbey announces mortgage rate cuts
Rates on the group's two, three and five-year fixed-rate loans will be cut by up to 0.3%, and the cost of mortgages in its large loans range will also be reduced, by up to 0.35%. These loans are aimed at people borrowing between £550,000 and £5 million.
The new rates will mean that a two-year fixed-rate mortgage for someone with a 25% deposit costs 5.79%.
Abbey's announcement follows a move by Lloyds TSB to cut its mortgage rates - for the fifth time in a month. Customers with a deposit of at least 25% will see fixed-rate deals over two, three, five and seven years cut by up to 0.11%.
This new round of cuts is a further sign that competition is returning to the mortgage market following the problems caused by the credit crunch.
Copyright © PA Business 2008
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