Abbey and Accord are the latest lenders to cut their mortgage rates, with fixed rates seeing the biggest reductions.

This follows news earlier this week from moneyfacts.co.uk that the cost of a two-year fixed-rate mortgage has returned to its pre-credit crunch level "as a result of the most prolonged period of cuts since the crisis began".

Abbey is cutting up to 0.3% off it's two, three and five year fixed rates. From tomorrow, this means that a buyer with a 25% deposit could get a rate of 5.79%. It is also reducing it's rates on large loans of between £500,000 and £5,000,000 by up to 0.35%.

Yesterday, Accord made a similar move by slashing it's rates by up to 0.7%, offering a 65% loan to value product with a 1.5% fee at 5.19%. It's three and five year fixes now weigh in at 5.69%.

Leeds Building Society have also introduced new rates this week. The rates start from 5.95%, come free of high lending charge, and some are fee free.

Kim Rebecchi, director of sales at Leeds Building Society, said of this: "There are currently many reports in the media saying the best mortgage deals are only available to those with large deposits, however we are offering very competitive deals to those with only a 10 per cent deposit."

He went on to say, "We recognise that many people are struggling in the current financial climate with large increases in the cost of living... our fixed rate mortgage range will minimise the payment shock for a sizeable proportion of borrowers and reduce monthly outgoings for many more. This will provide peace of mind at an affordable rate.”