While there have been plenty of lenders dropping fixed rates in recent months, few have cut their variable rates. That changed last week when ANZ, AMP Bank and Bendigo and Adelaide Bank bucked the trend.ANZ cut the discount on its Simplicity Plus principal and interest rate for new loans with loan to valuation ratios below 80 per cent. In effect, it cut the rate by 37 basis points to 4.09 per cent.AMP cut its variable rate for new borrowers to 3.79 per cent. The lower rate applies to owner occupiers taking out principal and interest loans between A$500,000 and $750,000.Bendigo Bank cut its basic variable rate for owner occupiers paying principal and interest by 49 bps, from 4.28 per cent to 3.79 per cent.Canstar reports that more than 40 lenders have cut fixed rates this year. The latest are NAB and Virgin Money.Virgin Money cut its three-year fixed rate by 30 bps and its five-year rate by 40 bps. The three-year rate for investors paying interest-only has dropped to 3.89 per cent.The five-year rate for owner occupiers paying principal and interest is now 4.09 per cent and for investors paying P&I the rate is 4.19 per cent."The skinnier gap between owner occupied and investment rates is confirmation of just how far demand for investment loans has declined, and how hard lenders are working to win their share," says Steve Mickenbecker, Canstar finance expert.