The market leading product comes with Abbey's Homebuyer Solution, which offers a free valuation and £250 cashback on completion.
Abbey is also launching a new three-year fix at 4.14 per cent for homebuyers, available up to 60 per cent LTV and with a fee of £995. The product also offers the Homebuyer Solution.
The lender is also reducing the fee on its two-year tracker at 3.49 per cent by £500, from £1495 to £995. The product is available up to 75 per cent LTV to both homebuyers and remortgagers.
Nici Audhlam-Gardiner, Abbey Mortgage Director, commented: "We are committed to meeting the needs of first-time buyers in today's difficult market conditions, which is why our new first-time buyer mortgage has been designed to offer the security of a competitive longer-term fix alongside a low fee. The product also offers our Homebuyer Solution, removing some of the additional costs associated in buying a home.
"We have also launched a highly competitive new three-year fix at 4.14 per cent for homebuyers and reduced the fee on our two-year tracker at 3.49 per cent by £500 as part of our ongoing commitment to offer a wide choice of highly competitive deals to all borrowers."
