New mortgage cuts announced
Abbey has announced more mortgage rate cuts as the downward
progress of rates across the industry continues.
The bank has added more cuts to those announced by HSBC, the
Co-operative Bank and Nationwide.
However, this latest move by Abbey is also lowering rates for those
with smaller deposits.
It is to offer a 0.6 per cent cut from Monday on two-year
fixed-rate mortgages on a deposit of 15 per cent, lowering the rate
from 7.04 per cent to 6.44 per cent.
Until now, none of the recent cuts have been on loan-to-value deals
of 85 per cent or higher.
Abbey's director of mortgages Phil Cliff said: "The rate and fee
cuts, plus the new deals, mean we have an extremely competitive
range for customers with deposits of 15 per cent or more."
In a Headline Money poll on the issue of mortgage lending, a Lloyds
TSB spokesperson said the mortgage market may gradually correct all
its recent problems "naturally", adding that it should be
remembered that the market is "cyclical".