Abbey has made changes to the rates on its existing fixed-rate mortgages, as well as launching two new deals through its direct and intermediary channels.

New Products: The first is a five year fixed-rate stepped product with a low first year rate of 3.99% that increases in the second and third years to 5.79% and 5.99% in years four and five respectively. The five-year mortgage has an application fee of £799

Type | Term (Yrs) | Rate Yr one | Rate Yrs 2-3 | Rate Yrs 4-5 Fixed | 5 | 3.99% | 5.79% | 5.99%

The second mortgage introduced this week is a 15-year fixed rate mortgage with a rate of just 5.39% - lower than many five year fixed-rate mortgages. The 15-year fixed-rate mortgage has an application fee of £599.

Nici Audhlam-Gardiner, Head of Mortgages at Abbey, said: “Both new products offer something different to customers. The stepped mortgage gives people the chance to benefit from lower upfront costs, which can help support buyers trying to get on the property ladder for the first time. The 15-year fixed-rate mortgage allows people to enjoy the certainty that repayments are fixed for the duration: we know this is particularly important to our customers in the current rising interest rate environment”.

Existing Products: As well as the launch of these new mortgage products Abbey has also moved some of its existing rates. The following changes have been made to its fixed-rate products:

Previous | New | Rate | Fee | Rate | Fee Abbey for Intermediaries - Exclusive 2 year fixed 90% LTV CORE | 4.99% | £999 | 5.19% | £995 Abbey for Intermediaries - Exclusive 2 year fixed 90% LTV Homebuyer | 5.24% | £999 | 5.39% | £995 Abbey for Intermediaries - Exclusive 2 year fixed 90% LTV Remortgage | 5.09% | £999 | 5.24% | £995 Direct - Exclusive 2 year fixed 90% LTV CORE | 5.04% | £799 | 5.24% | £799 Direct- Exclusive 2 year fixed 90% LTV Homebuyer | 5.34% | £799 | 5.44% | £799 Direct - Exclusive 2 year fixed 90% LTV Remortgage | 5.19% | £799 | 5.29% | £799

All other fixed rate products have seen an increase of 0.20%.

Nici Audhlam-Gardiner added: "Following the rise in SWAP rates in December and early January, we have found it necessary to make these changes to our fixed-rate products, although even after these changes, Abbey's full range of mortgage deals remains very competitive.”

The changes are effective from 22 January and do not affect rates for existing customers.

- Ends -

For media use only and not to be relied upon by consumers to make financial decisions.

Notes to Editors:

Abbey and the flame logo are registered trademarks. Abbey and Santander Abbey is a wholly owned subsidiary of Banco Santander Central Hispano, S.A. ("Santander") (SAN.MC, STD.N). Santander is the largest bank in the Euro Zone by market capitalisation and one of the largest worldwide. Founded in 1857, Santander has €818,100 million in assets and €976,500 million in managed funds, 67 million customers, 10,300 offices and a presence in 40 countries. It is the largest financial group in Spain and Latin America, and is a major player elsewhere in Europe, including the United Kingdom (through Abbey) and Portugal, where it is the third largest banking group. Through Santander Consumer Finance, it also operates a leading consumer finance franchise in Germany, Italy, Spain and nine other European countries. As of the first half of 2006, Santander recorded €3,216 million in net attributable profits, 26% more than in the same period of the previous year.

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Media Enquiries, please contact: David Stewart Tel: 0207 756 4199 Email: david.stewart@abbey.com