On top of the changes, Abbey is introducing a number of new, stepped products.
All changes are effective from Wednesday 23 January.
Ricky Okey of Abbey for Intermediaries said: “Demand is up for three-year fixes and that’s why we have made our price even more competitive, ideal for brokers whose clients are looking for a longer period of certainty on their payments or moving a client off an SVR rate which could potentially make them a saving of £140 a month on their mortgage payments."
He added: “We expect the new stepped product to prove popular with first-time buyers. The steps up are very manageable and help people who want to reduce the costs of their mortgage in the first year.”
Stepped products are as follows:
Two-year fixed (Core) - 75 per cent LTV at a rate of 5.62 per cent and booking fee of £999
Two-year fixed (Remortgage) - 75 per cent LTV at a rate of 5.79 per cent and booking fee of £999
Five-year fixed (Core & remortgage) - 75 per cent LTV at a rate of 5.63 per cent and booking fee of £499
Three-year fixed stepped (Core) - 90 per cent LTV at a rate of; Year 1 - 4.99 per cent Year 2 - 5.69 per cent Year 3 - 6.39 per cent; and booking fee of £499
Three-year tracker stepped (Core) - 90 per cent LTV at a rate of; Year 1 - 4.99 per cent Year 2 - 5.79 per cent Year 3 - 6.49 per cent; and booking fee of £499
Those with reduced rates are as follows (all at 90 per cent LTV)
Two-year fixed (Core) - 5.67 per cent and booking fee of £999, reduced by 0.05 per cent
Three-year fixed (Homebuyer) - at a rate of 5.69 per cent and booking fee of £999, reduced by 0.20 per cent
Three-year fixed (Remortgage) - at a rate of 5.69 per cent and booking fee of £999, reduced by 0.20 per cent
Three-year fixed (Core) - at a rate of 5.62 per cent and booking fee of £999, reduced by 0.10 per cent
10 year fixed (Core) - at a rate of 5.59 per cent and booking fee of £999, reduced by 0.05 per cent
10 year fixed (Homebuyer) - at a rate of 5.89 per cent and booking fee of £999, reduced by 0.05 per cent
10 year fixed (Remortgage) - at a rate of 5.64 per cent and booking fee of £999, reduced by 0.10 per cent
15 year(Core) - 5.59 per cent and booking fee of £999, reduced by 0.05 per cent
