Standard variable rate and base rate tracker mortgages
up by 0.25%
Following the increase in the Bank of England's base rate
from 4.00% to 4.25%, Abbey will make the following changes
to its interest rates:
Abbey National Mortgages:
Abbey's standard variable mortgage rate will increase by
0.25%, to 6.25%. Variable tracker rate mortgages, which
automatically follow changes in the base rate, will increase
by 0.25%. Rates will change at the beginning of June for
existing borrowers and on 10 May for new business.
Abbey’s new range of fixed rates is unaffected by
base rate changes. These deals, with rates from 4.99%, suit
people who want the reassurance of paying the same amount
for their mortgage each month, and who value longer-term
security against any future increases in the base rate.
Abbey National Savings:
Abbey is also increasing interest rates on its savings
accounts on 1 June. Rates on Abbey’s Flexible Saver
and Postal ISA, both of which have base rate guarantees,
will increase by 0.25%1. Rates on Flexible Saver, which
offers branch access, will now range from 3.05% AER to 3.35%
AER, plus a 0.50% gross p.a. bonus until the end of 2004.
The rate on Abbey’s best buy Postal ISA will rise to
4.85% AER.
Abbey is introducing three new tiers on its popular internet
account, eSaver, and increasing rates by between 0.25% and
0.55%. Rates on eSaver will now range from 4.10% AER (4.60%
gross p.a. with six month introductory bonus) to 4.40% AER
(4.90% gross p.a. with bonus).
Several other accounts will benefit from the full Bank
of England base rate increase of 0.25%, including Monthly
Saver2, which will now offer 4.25% AER, and First Home Saver
and Action Saver, both of which will offer up to 4.00% AER.
Rates on other tiered accounts such as Direct Saver and
Postal Account will increase by 0.25% across every tier
to ensure all customers get the maximum benefit, regardless
of their account balance. Easy ISA and Tessa Only ISA will
also see increases of between 0.20% and 0.25% across every
tier, with new rates on these two accounts now ranging from
3.80% AER to 4.35% AER.
Rates on Branch Saver will also be increased by 0.25% across
every tier to give serious savers the benefits of competitive
rates in line with the number of withdrawals made. Branch
Saver will now offer up to 3.60% AER.
As usual, the increase for existing mortgage customers
will come into effect at the same time as the increase for
savers.
Angus Porter, Abbey's Customer Director, said: "Clearly
this is good news for savers and although this is the second
base rate increase this year, homeowners are still experiencing
historically low rates.
“The changes in the mortgage market in the last few
years mean that only a minority of borrowers pay the standard
variable rate. More than 80 per cent of Abbey’s mortgage
book is on lower rates, including discounts, trackers and
fixed rates.
“Unlike many of our competitors, Abbey has announced
the changes to its savings rates at the same time as the
changes to its mortgage rates. We’re pleased to be
passing on the full base rate increase to the vast majority
of our savings customers, with some rates increasing by
as much as 0.55%.”
For more information on the latest products and rates visit
:
6 May 2004
Source: Abbey
