Abbey has cut the cost of its two and three-year fixed rate mortgages by up to 0.15 per cent this week.
From today, the high street lenders rates on a two-year fixed loan start at 6.34 per cent with a £999 fee, and on a three-year fix from 6.29 per cent (minimum loan-to-value ratio 75 per cent).
The move is the lenders second rate cut in a fortnight, having recently reduced interest on its 75 per cent loan-to-value (LTV) fixed rate and tracker loans by up to 0.2 per cent.
Abbey has also announced the addition of a new three-year fix to its range, at 70 per cent LTV. Interest is charged at 5.99 per cent on a maximum value of £250,000 and although a £1,695 fee applies, the bank stresses that the product is a market leader.
The latest rate cuts from Abbey comes as latest research from Moneyfacts.co.uk reveals that the cost of a fixed rate mortgage has continued to rise despite a fall in money market swap rates .
At the start of the month, the financial website reported that the average rate for a three-year fix now stands at 7.25 per cent, up from 6.47 per cent in June, while the average rate on two-year fixed deals has risen to 7.07 per cent - a 0.55 per cent on the previous month.




