The bank blamed the SVR move on higher banking costs, following a raft of lenders to do so including Halifax, Bank of Ireland and ING Direct. The bank launched two key account exclusives and, which Abbey said are available to more than 95% of the intermediary market, and cut rates by up to 0.20%.

The homebuyer and remortgage products include a three-year fix with a rate of 3.69% and a £995 fee, available up to 75% LTV to both homebuyers and remortgagers. The bank has also launched a two-year tracker with a rate of 2.79 per cent, or BBR +2.29%, available up to 60% LTV. The bank has also cut other rates including its five-year fix for key accounts at 60% LTV by 0.20% to 3.19% with a £1,495 fee and reduced the rate on its five-year fix at 75 per cent LTV by 0.2%, to 3.99%.

The intermediary lender has also reduced rates on a number of fixed rate deals by 0.10%, offered as a package with its Homebuyer Solution, which includes a free valuation and cash back for buyers and free legals and cash back on remortgages.

Miguel Sard, managing director of Abbey for Intermediaries, (pictured) said:

“We are delighted to support our intermediary partners with our highly competitive new key account exclusives. These new deals are available to both homebuyers and remortgagers and we expect there to be strong demand from intermediaries and their clients for such fantastic rates.

“We are committed to supporting the intermediary market with great products and service, and we have also reduced rates by up to 0.20 per cent across a number of our fixed rate deals to support borrowers.”