Norwich and Peterborough Building Society (N&P) is reducing rates on its 85% loan to value (LTV) fixed rate mortgages.

It is cutting up to 0.3% off the interest rates.

The mutual said the deals would provide a saving of nearly £1,500 over the course of a three-year fixed rate deal for an interest only mortgage of £150,000, compared to the previous deal with a 4.88% interest rate.

Richard Barker, mortgage manager at N&P, said: “This reduction in the interest rates across the range of our fixed rate mortgages is very good news for those looking to move home