Santander owned Abbey passes on rate cut

Abbey (LON:ANLA) the Spanish owned bank have said they will pass Bank of England Interest rate cut of 1 percent to all its customers an its variable rate mortgages that track the base rate, this will include all flexible deals, the changes will take place from January 1.

However, Abbey is withdrawing all its tracker products tonight, so the only reductions will apply to existing Abbey Mortgage holders.

Abbey’s Standard Variable Rate (SVR), current stands at 5.44 percent which is currently under review and the bank will inform customers very soon of their decision.

The trackers are being withdrawn to stop excessive in-flows as well as impacting the service levels, although Abbey will launch a new range of mortgages next week.

Source: FTAdviser The Abyss on dvd Blast! video