6 Aug

More mortgage rates cut

More mortgage rates cut

New signs have emerged that the mortgage rate trend is continuing downwards, as two more lenders have announced reductions in rates.

Abbey has revealed today that it is to reduce the rate on its two and three-year fixed rate and tracker deals by 0.1 per cent with immediate effect, following on from 0.15 per cent cuts last Friday.

The lender has also said those looking to take out mortgages for £150,000 or less will have a new, lower fee charged of £549.

Phil Cliff, head of mortgages at Abbey, stated: "Market movements and our mortgage strength allow us to make these further rate reductions to benefit our customers."

Cuts have also been announced today by Cheshire Building Society, Citywire reports.

The Macclesfield-based lender is to cut its short-term loan rates today, with two, three and five-year fixed rates being reduced by 0.5 per cent and ten-year deals by 0.3 per cent.

Cheshire is also thinking of shifting its emphasis to more long-term deals, with mortgage product manager James Taylor stating: "We could do a 20-year [mortgage] at 5.8 per cent," commenting that normally long-term loans are more expensive but not in the current market conditions.

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