Britain's largest lender reduces rates on many of its mortgage deals - part of an industry-wide trend.
Britain's homebuyers and owners are being wooed by lenders, who have embarked on the largest round of rate cuts since the onset of the credit crunch.
Earlier this week Abbey, the UK's largest mortgage firm, said that it would reduce rates on its fixed rate products by up to 0.3 per cent. These cuts come into effect today.
The decision to introduce the cheaper loans follows similar moves from big lenders including HBOS and HSBC, as well as a wide variety of building societies. However, analysts have cautioned that the cheapest loans are still only accessible for those willing to put up large lump-sum initial deposits.
"Anybody who had a deposit of less than ten per cent will still struggle to get a mortgage," mortgage broker Ray Boulger, of John Charcol, told the BBC.
Nevertheless, the latest round of reductions represent good news for homeowners who have been hit hard by the credit crunch. Lenders have restricted consumer credit since the onset of the crisis due to their suffering severe revenue concerns, therefore having less money to spend on advancing credit to customers.
The housing market has suffered as a result, with mortgage approvals numbers dropping by 71 percent over the past year according to the Bank of England.
