Abbey and Nationwide reduce fixed-rate and tracker mortgages

Abbey and Nationwide Building Society have announced that they are to reduce a range of their mortgages this week, with Nationwide offering better reduced rates than Abbey.

Nationwide are to reduce their interest rates on a range of their fixed-rate and tracker mortgages, rates on their fixed rate terms will fall 0.07% while a two-year fixed will now be available from 6.58% with a set up fee of £599, a 6.98% rate will have no fee.

Nationwide who recently launched their new two-year tracker will now start at 5.98%, this has a set up fee of £599, while the 5.78% has a fee of £1,499.

Looking closely at these new rates, it looks as though these tracker mortgages are now down by 0.27% however; these new rates only apply to those with larger deposits, so if you only have a 5% deposit, forget it.

Santander owned Abbey has now reduced the rate on their 75% loan-to-value fixed-rate and tracker loans by 0.2%. It is thought that other companies like Birmingham Midshires, will also announce rate cuts in the coming days.

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