Abbey has cut the interest rates on its two, three and five year fixed rate mortgages by up to 0.6 per cent, following a similar reduction in the cost of its fixed rate mortgage range last week.

Abbey’s two, three and five year fixed rate mortgages are now market-leading, the lender says; it still offers the market-leading tracker mortgage, and it is offering a new five year fixed rate on an 85 per cent loan to value, aimed at first time buyers struggling to get on the property ladder and homemovers trying to secure a mortgage.

The two year fixed rate mortgage from Abbey, for loans of up to £150,000 with 75 per cent LTV, will drop to 4.64 per cent with a £549 fee.

The lender’s three year fixed rate mortgage will offer 60 per cent LTV at a new lower rate of 4.64 per cent of a 75 per cent LTV of 4.89 per cent, both with a fee of £995.

The new five year fixed rate mortgage from Abbey will charge 4.94 per cent interest for a 60 per cent LTV deal 5.09 per cent for 75 per cent LTV, or 5.84 per cent for 85 per cent LTV, intended as a homemover and first time buyer mortgage, all with a £995 fee.

“Abbey continues to offer very competitive deals, demonstrating that we have, and continue to be, open for business,” said Nici Audhlam-Gardiner, director of Abbey mortgage.

“We now offer market leading fixed rates at 2, 3 and 5 years including some very competitive rates for lower deposit customers, allowing them to lock into the certainty of a fixed rate deal.”

The changes come into affect today.

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