Abbey cuts its mortgage rates
September 28, 2008
Mortgage lending giant Abbey, the High Street bank that is Spanish owned, has recently cut the interest rates on some of its mortgage products. Like a number of other lenders Abbey has been able to reduce mortgage interest rates due to a recent fall in swap rates, which is the rate at which banks lend to one another and is indicative of mortgage interest rates that are charged to consumers.
The recent data shows that interest rate reductions have been applied to Abbey’s two, three, and five year fixed rate mortgage deals, with the rate falling by up to 0.30%. For larger loans the rate cut is slightly higher, with 0.35% being knocked off for borrowers looking to take out loans of between £550,000 and £1 million.
Over recent weeks a number of other lenders have reduced the interest rates on some of their mortgage products, although some are still demanding high deposits from borrowers.
An official from Abbey said: “We’re determined to offer our customers the best deals and many of these rate reductions will make us a ‘best buy’. We’re looking very competitive across the range with two and three year fixes available from a market leading 5.74 per cent.”
He went on to state: “These great rates may be part of the reason why fixed-rate mortgages are increasing in popularity with borrowers. Our research shows they are three times as likely to choose a three year fixed-rate deal compared with six months ago. Overall, approximately 52 per cent would now opt for a fixed rate product if they re-mortgaged tomorrow compared with 47 per cent last month and 35 per cent six months ago.”
- Low fee mortgages from Abbey for those with sizeable deposits Over recent months a number of lenders in the UK have increased the mortgage arrangement fees on their mortgage products, and this has seriously affected the ability of many people to afford to take out
- Abbey’s 125% mortgage offer not appropriate High street lender, the Abbey, is being criticised by many industry experts after announcing the launch of a 125% mortgage, which is being made available to first time buyers along with other groups. Experts claim
- Increased stability for mortgage product numbers on market Since last summer when the global credit crunch swept across the UK the number of mortgage products available on the market has plummeted, with many lenders having to take a wide range of products off
- New service launched for consumers looking for mortgage advice In the current financial climate many people that are looking to take out a mortgage are also looking for quality financial advice from an experience, qualified, and trained industry officials to help them avoid making
- Borrowing rates still rise despite base rate cuts There have been three base rate cuts since December of last year, with the Bank of England reducing rates by 0.25% each time, taking the base rate from 5.75% to 5%. Over the past couple
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