Lloyds TSB yesterday announced it was cutting its mortgage rates for the second time in two weeks amid further signs that competition was returning to the mortgage market.

The group, which includes the Cheltenham & Gloucester brand, is cutting mainstream fixed-rate mortgages by up to 0.31 percentage points, and tracker deals by 0.1 points.

It is also slashing its two-year fixed-rate loan for people borrowing between £50,000 and £250,000 by 0.5 points to 5.49%.

First Direct, the internet and telephone bank, is offering a fee-free offset tracker mortgage with a rate of 5.99% for people with a 20% deposit.

The announcements come days after Halifax said it was cutting mortgages by up to 0.45 points.

Financial Times