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Alliance & Leicester is the latest lender to slash the interest rates charged on almost all of its mortgages by between 0.1% and 0.55%.

The new range of mortgages which is available form today includes a two year tracker rate mortgage at Bank base rate plus 1.99% with no fee up to 85% LTV, and a two year fixed rate mortgage at 6.19%, thats a reduction from 6.64% - up to 75% LTV and with a fee of £599.The latest move follows other lenders which have cut their mortgage interest rates over the last week Cheltenham & Gloucester, Halifax, Nationwide and Abbey being amongst the front runners.

Richard Taylor, head of mortgage products at Alliance & Leicester, said: “We are reducing the majority of the rates across our mortgage portfolio, which is great news for people looking for a new deal.

“These new mortgage products are available to both new and existing customers, with a number of options to choose from, including deals which benefit from no fees, as well as free valuation and legal fees.”