The Abbey National has today announced mortgage rate cuts on several of its home loan products, specifically the fixed rate and flexible mortgages.
All of the Abbey National flexible offset mortgages have had a rate cut of 0.2 percent, as have the five year fixed rate offers, while three year tracker mortgages have received a reduction of 0.1 percent. They have also stated that more reductions will follow, these being on the two year and three year fixed rate mortgages, where rates could come down by a quarter of 1 percent.
A spokesman for the Abbey National stated that they wanted to do the best they could for the customer, delivering the best possible deal whenever possible. It is also hoped that the cutting of rates across the market will stimulate activity in the housing market.
Some Abbey National mortgage customers, specifically those looking for fixed rate mortgages, are facing rate increases of up to 0.56 percent. This comes only a week after rates were reduced by the company.
The biggest increases are in the short term period fixed rate mortgages, with the 3 year one going up to 6.49 percent from 5.93 percent. The Abbey National is citing a major increase in swap rates for the rises, feeling they will force the Bank of England to increase the base rate.
An Abbey spokesman, aiming to explain the shifts in interest rate commented on their strong market position enabling them to reduce mortgage interest rates last week, but this latest news has forced them to increase them again.
Good news for home buyers comes from the HSBC which is cutting both interest rates and fees on some of their fixed rate mortgage products.
The popular 2 year fixed rate mortgages offered by HSBC are to have their rates reduced by 0.31 percent, with an additional GBP200 taken off the admin fee. This takes it down to just GBP599. Some of the longer term fixed rate mortgages will also be reduced, with cuts of 0.16 percent.
As well as existing deals the HSBC mortgage department also has a new product to offer. A 5 year fixed rate mortgage with an interest rate of 5.98 percent is to be made available to any customers who have an HSBC Premier or Plus account. This new mortgage does have an arrangement fee of GBP999 with it.
