The new fixed rates are available through both Abbey and Alliance & Leicester branches and are as follows:
70 per cent LTV 2 yr fix homebuyer product at 3.88 per cent, fee £995 - rate reduced by 0.10 per cent
85 per cent LTV 3 yr fix homebuyer product at 5.88 per cent, fee £995 - rate reduced by 0.11 per cent
In addition, for those customers who wish to take out a variable mortgage, a new 70 per cent LTV, two year tracker mortgage at 2.94 per cent (Remortgage & Homebuyer), with a fee of £995 is now available through both Abbey and Alliance & Leicester branches.
Nici Audhlam-Gardiner, Director of Mortgages at Abbey said: "With interest rates at a historical low many people are looking to tie in to fixed rates now, and in what is traditionally a very popular time of the year to purchase a house we expect that these reductions to our fixed rate product range will help more people find an affordable mortgage".