Big name high street lenders NatWest and Royal Bank of Scotland have brought in new fixed-rate mortgage products.
The new deals come as two, three or five-year fixed deals, with rates starting at 3.49 per cent.
In addition to the new fixed rate deals, both banks have also cut their tracker mortgage rates by up to 0.65 per cent.
The most competitive deal from the mortgage providers is the two-year fixed-rate which has a maximum loan-to-value of 75 per cent and a starting interest rate of 3.49 per cent.
It is not just the interest rates that have been cut by NatWest and RBS. In addition they have both cut from ?200 to ?800 off the fees of many of their fixed-rate packages. Fees for new mortgages now start as low as ?299.
Director of branch mortgages, Andy Fell, said: “We remain committed to lending to our customers and offering highly competitive rates during these challenging economic conditions. We’re helping more customers secure a competitive rate and save money on their monthly repayments. ”
It was only last week that the Government raised its stake in the RBS to 68 per cent.
Some watchers have speculated that these are the early signs of a price war breaking out between mortgager providers, as several of the country’s largest lenders have begun to reduce rates and introduce competitive deals over the past few days.
Last week, both Abbey and Alliance & Leicester reduced a number of their fixed and tracker rates.
