Norwich and Peterborough Building Society (N&P) has cut over one quarter of one percentage point off the interest rate on its two-year fixed rate 85% LTV mortgage.

The deal has been cut from 4.15% to 3.89% for new customers. It comes with a £995 product fee and the valuation fee is paid by the customer.

Richard Barker, mortgage manager at N&P, said: “This reduction in our two-year fixed rate mortgage is very good news for those looking to move home in the New Year.