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The new five-year fixed rate for smaller mortgages starts from 4.02percent with a 999 fee (this rate is available up to 90percent LTV) and there is a fee-free deal at 4.28percent. NatWest has also slashed its residential and buy-to-let fixed rates for new and existing customers, taking its best deals below 4percent in line with its competitors. State Bank of India is cutting fixed rates across its buy-to-let lending range by up to 0.5 percentage points, effective from tomorrow .

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This deal is part of the government-backed mortgage guarantee scheme. The two-year fixed rate at 85percent LTV has fallen slightly to 5.77percent (down from 5.79percent). The Mortgage Works, the buy-to-let arm of Nationwide building society, has cut selected fixed rates by up to to 0.3 percentage points.