Abbey fails to pass on rate reduction to new tracker deals

  • Story by: Gemma Westacott
  • Magazine: FTAdviser
  • Published Friday , October 10, 2008

Abbey has confirmed that it will not be passing on this week's Bank of England base rate reduction to new tracker mortgage customers.

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The lender said that while existing tracker customers will see their rates drop 0.5 per cent from 3 November, the rates will remain the same for new customers.

Abbey said the decision to hold rates steady for new customers was "a reflection that the short term variable funding costs have not reduced".

An Abbey spokesman said: "Following the announcement that the Bank of England has lowered the base rate by 0.50 per cent, as of this Friday (10 October) Abbey is maintaining rates on its range of trackers for new customers."

Currently Abbey offers a two-year tracker mortgage at 5.89 per cent and a three-year tracker mortgage at 5.79 per cent.

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