The Royal Bank of Scotland has slashed the interest rates on its fixed and tracker mortgages up to 0.3% in a bid to gain a further share in the market.
The move means that all mortgages taken out directly with either Natwest or Royal Bank of Scotland will be between 0.1% and 0.3% lower than they currently stand.
Somewhat surprisingly, the group insist that the rate cut is nothing to do with the credit crunch and a lack of business.
Paul Geddes, chief executive of consumer banking, commented: "Whilst 2008 has seen a shrinking mortgage market, we have actually increased the amount we have lent by 18% and plan to continue this trend for the rest of the year."