The move, says Abbey, will put the lender at the top of the best buy tables for two, three and five year fixed rate mortgage deals for loans at 75 per cent LTV and below.

“Despite the challenging market conditions our mortgage business has gone from strength to strength as our results showed earlier in the week,” said Nici Audhlam Gardiner, director of Abbey Mortgages.

“This week we’re cutting rates further on our most popular two, three and five-year fixed rate deals by up to 0.35 per cent.”

The cuts will see the two and three year 60 per cent LTV deals cut by 0.25 per cent down to 5.49 per cent, the two and three years 75 per LTV deals both down to 5.54 per cent while the five year 60 per cent LTV will be cut to 5.49 per cent and the 75 per cent LTV for five years down to 5.54 per cent.

In addition, Alliance & Leicester mortgages are also cutting fixed rate loan. All the A&L; fixed rate mortgage deals will be cut by 0.20 per cent to 0.30 per cent.

“We are reducing rates on all of our fixed rate products in the mortgage portfolio, which is great news for people looking for a new deal,” said Richard Taylor, head of mortgage products at Alliance & Leicester.

“These new mortgage products offer customers a number of options to choose from, including deals which benefit from no fees, as well as free valuation and legal fees.”

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