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Lender says...

Abbey has reduced the rates on its flexible and tracker rate mortgages by 0.05 per cent and some of its fixed rate products by 0.17 per cent for customers with a deposit of 25 per cent or more.

Abbey's two-year fixed rate products now start from 5.95 per cent with a £995 while the three year fixed rate products start from 5.75 per cent with a £1499 fee.

There is also a five-year fixed rate product available from 5.75 per cent with a £1499 fee. All products are available up to 75 per cent loan-to-value.

A spokesman for Abbey Mortgages, said: "Our focus is to provide all of our customers with value and choice, while continuing to review our mortgage range and rates against a competitive and dynamic market.

"As such, we have taken the opportunity to reduce rates to a small number of fixed and tracker products within our range.

"In the last two years, we have been carefully maintaining a balance between the profitability of new business, prudent lending criteria and our market share aspirations. While current market conditions remain challenging, this sensible approach to risk has proved very resilient and allows us to reward lower fixed-rate LTV business with competitive rates."

Adviser says...

Ronan Marrion, a mortgage adviser for Truro-based Worldwide Financial Planning, said: "This is great news at a time when lenders nationally are adverse to consider passing on lower rate margins to customers. 

"Abbey has taken a commonsense approach to how they are offering their products, for example picking out the 75 per cent loan-to-value deals and I am sure this twinned with their own credit scoring systems will ensure they are only transacting quality low risk business."

Rating 4/5 stars