After yesterday's news from Moneyfacts.co.uk, a lender has finally responded by lowing it's headline rates.

From today, Abbey's fixed and variable rate mortgage products have been reduced by 0.05%. Furthermore, new fixed rate mortgages which require borrowers to have 25% equity in their homes are to be reduced by 0.17%.

Abbey's five year fixed rate is now priced attractively at 5.75%, albeit with a sizeable fee £1,4999.

Abbey Mortgages said: "Our focus is to provide all of our customers with value and choice, whilst continuing to review our mortgage range and rates against a competitive and dynamic market.

"As such, we have taken the opportunity to reduce rates to a small number of fixed and tracker products within our range.

"Over the last two years, we have been carefully maintaining a balance between the profitability of new business, prudent lending criteria and our market share aspirations.

"Whilst current market conditions remain challenging, this sensible approach to risk has proved very resilient and allows us to reward lower fixed-rate LTV business with competitive rates."