Abbey drops rates for high deposit customers

Abbey says it is making additional reductions to flexible and tracker rates in anticipation of further LIBOR falls in the near future. All flexible and tracker products will be reduced by 0.05%, following a 0.1% shortly after the Bank of England’s latest base rate cut. However, as the base rate was cut by 0.25%, the 0.15% total cut widens the gap between base rates and rates paid by borrowers. Fixed rates for borrowers with higher deposits of 25% or more have been reduced by up to 0.17%, with Abbey’s five-year fixed rate priced at 5.75%. An Abbey spokesperson says: “Over the last two ye...