Abbey slashes rates

This will mean that rates for this product will be 6.34% for 2 & 3 year fixed and 6.44% for two and three year variable, both these products attract a fee of £995.

The upfront fee of £150 previously collected can now be added to the mortgage, on products up to 85% LTV. So borrowers choosing products with free valuation and legal services will have minimal upfront costs.

Abbey is also cutting rates on some of its 70 and 75% LTV mortgages. Deals at the 70% LTV now start from 5.54% with a £1,495 fee which is available for laons up to £250,000.

Deals at 75% LTV now start at 5.74% with a £995 fee available on loans up to £550,000.

Phil Cliff, Director of Mortgages, said: "Abbey's aim is to provide a range of competitive deals for all customers - whether they have a small or large deposit. The rate and fee cuts, plus the new deals, mean we have an extremely competitive range for customers with deposits of 15 per cent or more.

"Fixed rate interest rates have reduced recently and as the market environment changes, we're able to pass these benefits to our customers. The upfront element of the fee is no longer necessary in the current market to secure the best rate for customers. The change means that people taking out loans of up to 85 per cent loan to value can add the whole booking fee to the loan if they wish."