The move will make Abbey National's SVR more competitive than other high street lenders. Changes for existing customers will be effective from November 1.
The decision follows the recent launch of Abbey National's new mortgage portfolio. The new range offers customers upfront deals before reverting to the SVR at the end of the benefit period. There are also fully flexible mortgages linked to Base rate with flexibility from day one.
Commenting on the move, Debra Fraser, director of mortgage marketing, said: "In September we successfully launched a new range that is simple and straightforward whilst providing great value for customers whether they are moving house or remortgaging. This latest move will ensure that our SVR is more attractive and will further reinforce our position as one of the most competitive lenders in the market."