Lender cuts five-year mortgage rates

Abbey has announced a cut in the rates applying to its five-year fixed-rate mortgage options.

The move, which came into effect on Friday November 28th, has taken up to 0.45 per cent off the interest rates of its mortgages set between 60 and 75 per cent loan to value (LTV).

A five-year deal at 60 per cent LTV with a £995 fee will now carry an interest rate of 5.04 per cent, while a 75 per cent LTV option with a £549 fee will have a charge of 5.34 per cent.

Commenting on the move, which may be of interest to those looking to switch mortgage provider as part of a debt management plan, mortgage director of Abbey Nici Audhlam-Gardiner explained: “The cut in rates is timely as our research shows that twice the number of people are choosing five-year fixes now than in September 2008, 16 per cent compared to just eight per cent.”

The move follows similar action from Nationwide, which last week cut the rates on its two-year mortgages by up to 0.8 per cent.

By Tom Musk