Launched last week, the product has caused a stir in the industry after critics initially didn't take too kindly to such a high product fee - of £9,999.
However Abbey asserted that putting such a price on a product simply made the fee transparent, saying that a seemingly small 2 per cent fee on a £750,000 mortgage actually came out at £15,000.
Today eMoneyfacts.co.uk broke the news that Abbey had withdrawn this high fee loan, a claim which Abbey dismissed as false.
An Abbey spokesperson responded to the news, saying: "You may have seen in a statement from Moneyfacts saying that we are withdrawing our high fee loan. This is not correct.
"The Abbey is still offering a 2 year fixed rate loan at 5.59 per cent with a £9,999 arrangement fee for mortgages with a loan size of between £500,000 and £750,000.”
eMoneyfacts.co.uk has since acknowledged its error.
