Abbey’s mortgage rate goes up. Bank of England Interest rate comes down

Yesterday, Abbey announced it was increasing the rate on some of its mortgage products, saying that they were following recent changes made by its competitor, since the announcement the Bank of England have cut the Bank of England Base rate by half a percent to 4.5 percent.

Abbey who is owned by Spanish bank Santander is increasing the cost of its two and three-year fixed-rate mortgages by up to 0.15 percent, this increase will put about £14 extra on a monthly repayment on a typical £150,000 mortgage. The Abbey mortgage rate change came into force today as amid the global interest rate cut.

The Santander owned bank also said it was reducing rates on its five-year fixed rate mortgage by 0.1% for people with 25 percent deposit of the property value, it is also taking its fee for the product down to £995 from £1,499.

Source: ukpress.google