Woolwich, the mortgage arm of Barclays, is cutting rates on buy-to-let deals by up to half a percentage point.

From Tuesday, it will be introducing a new rate of 6.99 per cent on its five-year fixed-rate deal, down from 7.49 per cent. The interest rate on its portfolio lifetime tracker, aimed at professional landlords, will also fall, from 1.99 per cent above the base rate, currently 5 per cent, to 1.49 per cent rate above the base rate.

Buy-to-let landlords are the latest borrowers to benefit from a series of rate cuts from lenders. Halifax, owned by HBOS, cut rates by up to almost a third of a point on some mortgage deals last Friday while its Bank of Scotland, also part of the HBOS, group, reduced rates by 0.45 percentage points.

Earlier in the week Woolwich cut rates on residential deals by up to 0.35 percentage points while Abbey, Britain's second-biggest lender, reduced its fixed-rate deals by 0.1 percentage points.

Lloyds TSB and Nationwide have also announced cheaper deals.

The decision by lenders to reduce rates on home loans follows an easing of conditions in the inter-bank lending market. Swap rates, which determine the cost of fixed-rate mortgages, fell below six per cent last week after peaking at 6.5 per cent in mid June.

David Hollingworth, of L&C Mortgages, a broker, said: "Banks are showing a little more appetite for lending after seeking to reduce their mortgage books earlier this year.

"Any move to make mortgages in the buy-to-let sector more competitive is obviously welcome. Woolwich is a major player in the market and it clearly believes there is demand from buy-to-let landlords looking to remortgage."

The two new Woolwich rates are only available to borrowers seeking a loan worth a maximum of 75 per cent of a property's value. The five-year fixed-rate deal has a 1 per cent fee. It has an early redemption charge (ERC) for the first three-years of six months interest. The lifetime tracker charges a fee of £295 per property and also has an ERC for the first three years, of two months interest.

Stroud & Swindon currently offer one of the most competitive fixed rate deals. Its three-year fixed-rate buy-to-let home loan has a rate of 6.80 per cent with a £1499 fee on loans of up to 75 per cent of a property's value, with no extended ERCs.

Leeds Building Society is also offering a lifetime tracker at 1.59 per cent above the base rate for life of the loan, with a maximum LTV of 70 per cent, with a £1499 fee and no early repayment charges.

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