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Abbey reduces rates on its tracker mortages

Abbey Banking has announced that it is reducing rates on its two-year tracker and flexible mortgages by 0.1%.

Abbey has announced that it will continue to review the cost of funding and will look to reflect further changes in its mortgage range going forward. The company hopes that other lenders will also act to support the stimulation of the mortgage market.

Abbey believes that this extra funding will, in time, reduce London interbank offered rate and in anticipation of this it has decided to reduce rates on tracker and flexible deals.

A spokesman for Abbey, said: Abbey welcomes and supports the Bank of England’s decision to broaden its range of accepted collateral. It is an important step in bringing greater liquidity to the market.