The main UK banks have come under fire recently for failing to stimulate the economy by resuming normal levels of lending. But Abbey and Barclays’ mortgage arm, Woolwich are making borrowing easier for consumers with further mortgage rate cuts.

Abbey has now cut the rate on its five year fixed rate mortgage range by as much as 0.45 per cent, making the headline rate 5.04 per cent for a 60 per cent LTV deal with a £995 arrangement fee.

The new deal joins Abbey’s two and three year fixed rate mortgage deals which have both had their rates reduced since the base rate cut. Commenting, Abbey mortgage director, Nici Audhlam-Gardiner, said:

“In response to customer demand, we have now lowered the rates on our 5 year fixed rate deals as well as the 2 and 3 year fixed rates on which we lowered rates last week. The last time they were at this level was over two years ago, in April 2006.”

Barclays’ mortgage lending arm, Woolwich has also chosen to cut its mortgage rates following the rate cut and increasing pressure from the Government calling for banks to resume lending.

In fact, Woolwich has cut the rates on its fixed mortgage range by as much as 0.7 per cent, bringing its lowest fixed rate to 4.39 per cent for two years. In addition to reducing its fixed rates, Woolwich has followed the likes of Abbey in re-introducing its tracker mortgages to the market.

On the announcement of a base rate cut to three per cent earlier this month, most lenders temporarily withdrew their tracker range, which is why Woolwich has reintroduced a lifetime tracker mortgage with a rate of 4.99 per cent.

Commenting, Andy Gray, head of mortgages for Barclays said: “We’re constantly reviewing our mortgage portfolio to ensure our customers receive the best deal for their circumstances, which is especially important during this time of economic uncertainty.”

© Fair Investment Company Ltd