High street bank cuts rates

Posted: 07 Aug 2008 13:33:59 GMT

Cash-strapped borrowers will be pleased to hear that Abbey is cutting the rates on some of its two and three-year fixed and tracker deals by up to as much as 0.10 per cent.

The news follows an announcement last week by the lender that they have made rate reductions on both their two and three-year products and have a new low fee range for those borrowing up to £150,000.

Commenting on the new deals, Phil Cliff, Abbey's head of mortgages, said: "Market movements and our mortgage strength allow us to make these further rate reductions to benefit our customers."

According to financial advice site Moneyfacts.co.uk, it is important that consumers check that if their rates have fallen their fees have not been increased to meet the difference.

Darren Cook, mortgage expert at Moneyfacts.co.uk, explained that it was "imperative" for anyone looking at a new mortgage deal to "consider the true cost of the deal".

Mr Cook said that swap rates falling was a good sign of the market recovering and should mean an increase in the number of high street lenders dropping their loan rates.

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