Mortgage buyers in the UK can rejoice this morning, with lenders seeming to launch a rate war to attract the best customers.

Of the twelve leading lenders nine have cut their headline interest rates on two and three-year fixed-rate deals in the last two weeks alone, according to research from MoneySupermarket.com.

Halifax – the UK's largest mortgage lender – has led the way with cuts of 0.95 per cent, bringing the cost of the cheapest two-year deal down to 4.89 per cent.

However, the deal comes with a maximum loan-to-value (LTV) ratio of 25 per cent and a fee of 2.5 per cent.

Lloyds TSB is also offering a rate below five per cent. Following cuts of 0.50 per cent over the last two weeks, the bank now has a deal at 4.99 per cent, with a similar LTV a fee structure of Halifax.

Cuts of 0.20 and 0.25 respectively have seen Britannia and Abbey take rates on a two-year fixed-rate deal to 5.44 and 5.54 per cent.

However, Abbey has a maximum LTV of 70 per cent on the cheapest deals.

"We are in the midst of a mortgage crisis, yet three quarters of the nation's biggest lenders have recently slashed rates on deals," said Louise Cuming, head of mortgages at MoneySupermarket.com.

"For such a significant proportion of mortgage providers to drop their rates underlines an industry wide recognition that rates were too high.

"This is good for borrowers who can take heart in some positive news - a rarity during the current credit crisis.

"I am also pleased see lenders making a real effort to make borrowing more affordable."