THE cost of fixed-rate mortgages has continued to fall with two more lenders cutting the interest rates they charge on the deals.

Nationwide and Abbey became the latest groups to announce they were reducing rates on their fixed-rate deals.

They followed other major lenders such as Cheltenham & Gloucester, first direct, the Post Office and Yorkshire Building Society, which have already cut their rates this month.

The flurry of rate cuts has caused the average interest rate charged on a two-year fixed-rate deal to fall from 4.93 per cent at the beginning of December to 4.86 per cent now.