Abbey says trackers won't reflect base rate cut

While existing tracker customers will see rates fall by 0.5%, new borrowers will see the rate differential increased by 0.5% to compensate for the emergency rate cut announced on Wednesday. Abbey’s 2-year tracker for customer seeking a 65% LTV loan will remain at 5.94%, with the differential increasing from +0.94% to + 1.44%. Abbey says its short-term fund costs have not fallen, despite the base rate cut, as Libor remains high. If you would like to comment on this story, contact: John Bakie Tel: 020 7484 9805 e-mail: [email protected] IFAonline