Abbey decides to reduce mortgage rates yet again

London (Ask4paydayloan) Sep 17, 2008 : Investors in the fixed rate deals, watch out, Abbey, the largest high-street lending authority has decided to reduce the mortgage rates. From now on the rate of interest on deposit will stand at 15 percent.

Interestingly, Abbey is not the first bank to have tread on this path. Before Abbey, very recently HSBC, Nationwide and other few well recognised cooperative banks too have gone ahead and declared a reduction in the mortgage rates.

The slump in the cost of borrowing wholesale funds on the financial markets is being cited as reason behind this cut in the mortgage rate. Phil Cliff, Abbey's mortgage director, was quite optimistic about this move. He explained that the reduction in mortgage rates was necessary to compensate for the frequent changes that has been occurring off late. Aaron Strutt, chief of mortgage brokers Chase De Vere, also voiced his opinion in favour of this move.

This move will make a significant impact on the savings of users, who have already been hit by the existing liquidity crisis. Although according to Ray Boulger, who is associated with the John Charcol, the famous mortgage brokers, the situations in the past six months have improved considerably then what it was in the first six months of the year, much to the delight of him.

He also indicated many construction organisations might resurface following the crash that they suffered at the hands of this crisis. He even anticipates that in near future, the buy-to-let market will become more agile, which is a good omen for all the landlord aspirants, as they are offering a more reasonable deals these days.

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