The lender will make the product available for seven days from Friday and the two-year fix comes with fees of £1,495 and is available up to 60% LTV.
The product is a key account exclusive and will be available to more than 95% of the intermediary market. The product has a maximum loan size of £500,000.
Abbey launched a new part interest-only, part repayment product earlier this week and Mortgage Solutions understands that recent moves the lender to loosen criteria will continue into 2013.
The move means Abbey is the first lender return to the sub-2% space since the withdrawal of Tesco’s 1.99% fix earlier this month after less than one month.
The lender will also be reducing rates by up to 0.26% on a number of its buy-to-let deals for non-professional landlords. This follows another loosening of criteria in this area earlier this week.
Miguel Sard, managing director of Abbey for Intermediaries, said: “With a fantastic rate of 1.99% and available to both homebuyers and remortgagers up to 60% LTV, we expect this great rate to be snapped up within the next seven days.”
