According to a company statement, the reduction applies to all new applications from 1 July 2010.

The non-bank lender’s head of wholesale mortgages Grant Lloyd said the rate cuts would stimulate competition in the market.

“While other lenders are trimming their fixed rates, we have made the decision to reduce some of our variable products which have a higher take up rate by consumers,” Mr Lloyd said.

“Moving forward we will be releasing more competitive product offerings in support of our clients.”