Abbey increases rates for their tracker mortgage products.

Abbey have taken the decision to increase its rates over various fixed rate mortgage and tracker mortgage deals, the lender has advised their rates will increase by between 0.10 to 0.50 per cent.

The lender has also reduced its maximum loan amounts for flexible offset products which have been almost halved going from £1 million to £550,000. The lender announced plans to withdraw selected fee-free 2 , 3 and 5 year fixed mortgage products for 60 per cent, 75 per cent and 85 per cent LTV, as well as selected 2 year tracker mortgage refinance products for 85 per cent LTV.

Deal Direct commented saying that Abbey's decision to reduce the offset loan size will be significant and may impact on the lenders business levels. Some believed that Abbey may lose a percentage of their business that comes in through higher earners. For those higher income individuals, it is common for company bonuses and property development income to be offset against deals which are often in excess of half a million. As many other building societies will continue to lend up to three quarters of a million for offset products, Abbey could well lose out to other lenders.

A spokeswoman for Abbey reacted saying that the lender constantly reviews their range of products which, they believe are in line with competitor offers and market conditions. They also said that Abbey remains committed to supporting the property market and, will continue to offer what they consider are a range of competitive products.

Tracker mortgage rates are linked to the Bank of England's base rate which shows no sign of any increase. However, as lender funding costs continue to rise, buyers are recommended to hurry up and make a deal before the most competitive rates are withdrawn.

Deal Direct can help you get the best tracker mortgage deal available in the UK today.

Contact us by filling in our enquiry form or you can simply telephone 0800 048 8828 and let our skilled mortgage advisers do the rest.