Abbey cuts rates on two-year mortgages

Abbey has announced it has reduced the rates on its most popular two-year fixed-rate deals by up to one per cent.

And the firm has also introduced a new range of two-year base rate tracker mortgages after it, along with many other lenders, withdrew its tracker offerings following last week’s base rate cut by the Bank of England.

The move may be welcomed by those considering moving their mortgage as part of a plan to become debt free over the coming months.

Director of Abbey Mortgages Nici Audhlam noted that the cut in the base rate helped to ease the pressure on swap rates.

“[This] means we can significantly cut rates on our two-year fixed-rate mortgage range. In addition we’re the first lender to reintroduce a range of two-year base rate trackers,” she explained.

Alliance & Leicester recently announced a similar move, cutting its fixed-rate mortgages by 0.2 per cent on two and five-year deals and by 0.15 per cent on its three-year offerings.

By Tom Musk