Abbey has announced it will cut rates on two-year and three-year fixes from Monday.

The lender has also confirmed it will keep its five-year, flexible and tracker deals at the same rate.

Two-year and three-year fixed rates will be cut by up to 0.15%, and it will also launch a new three-year deal.

The two-year fixed range now starts at 6.24%, while three-year fixes are available for 75% LTV at a rate of 6.29%.

A new three-year fix will offer a rate of 5.99% with an arrangement fee of £1,695 and a maximum LTV of 70% up to £250,000.