Rates on the average two-year fixed mortgage plummeted in February by 0.37 per cent.
According to Moneyfacts, this was its biggest monthly fall since December 2022.
The financial information provider said that average mortgage rates on overall two- and five-year fixed rate deals fell for a sixth consecutive month.
Between the start of January and the start of February, average two- and five-year fixed rates fell to 5.56 per cent and 5.18 per cent respectively.
The average Standard Variable Rate (SVR) fell slightly too, by just 0.01 percentage point, to 8.17 per cent.
The average two-year tracker variable mortgage remained at 6.15 per cent.
Rachel Springall, finance expert at Moneyfacts, said: “Borrowers searching for a new mortgage deal may be delighted to know fixed mortgage rates continued their downward trend.
“There have been big expectations for fixed rates to fall further, and whether now is the right time to refinance will come down to an individual’s circumstances. Lenders are in constant review of their ranges, and it is likely rates will fluctuate in the coming weeks due to the noises surrounding future rate expectations.”
Fewer deals available
Product choice also fell month-on-month, according to Moneyfacts, to 5,787 options.
This was the first reduction in available mortgages since July 2023.
Despite the dip, there are more mortgages on offer to those with a small deposit, with 274 95 per cent loan-to-value mortgage on offer.
The average shelf-life of a mortgage product rose to 28 days, the highest figure since February 2023.