Britain's biggest lender has become the latest to reduce its rates.
Mortgage rates in the UK continue to be cut by lenders.
Abbey, Britain's largest mortgage firm, has become the latest to announce a new round of rate cuts, with fixed and variable rates dropping by up to 0.6 percent. However, these new rates will only be available to those buyers with initial deposits of 15 percent or more.
Over recent weeks, other mortgage firms including HBOS and Barclays have also moved to make their loans cheaper. Reductions in the rates at which banks lend to each other has eased revenue worries at the lenders and therefore allows them to reduce consumer mortgages.
The moves represent further good news for Britain's homebuyers, who have also been boosted by the government's recent announcement that stamp duty for properties worth £175,000 or less would be scrapped for a year. However, mortgage lending as a whole remains sluggish, with many potential buyers remaining discouraged by falling house prices.
Phil Cliff, director of mortgages at Abbey, said: "Fixed rate interest rates have reduced recently and as the market environment changes, we're able to pass these benefits to our customers. The upfront element of the fee is no longer necessary in the current market to secure the best rate for customers."
According to Nationwide, the value of the average UK home has fallen by 10.5 percent over the past 12 months.
