Abbey relax lending rules.

ABBEY yesterday said they were relaxing their lending rules to make their best deals available to people with smaller deposits.

All of their fixed rate mortgages will be available to people borrowing up to 70 per cent of their home's value, rather than restricting them to those with at least a 40 per cent deposit.

The group, who reported a 15 per cent jump in lending during the first quarter, have not increased the rates charged on any of the deals.

Nici Audhlam-Gardiner, Abbey mortgage director, said: "Increasing the LTVs on all our fixed rate mortgages that were previously available at 60 per cent LTV to 70 per cent LTV will help those looking to purchase a property, move home or remortgage.

"Our approach remains prudent but this is a sensible move given some of the early signs of confidence returning to the housing market." Commentators welcomed Abbey's move as a step in the right direction, although they said it would not have a huge impact on the market.

HSBC are also launching a five-year fixed rate deal today at 4.39 per cent for people borrowing up to 75 per cent of their home's value..