In the last three months of 2014 some 82.2% of new loans were made on a fixed basis. However, this was marginally down on the 82.6% recorded in Q3 2014.

Of all outstanding mortgages, 41.3% are currently fixed.

Figures from the central bank showed the average interest rate on new loans dropped to 3.26% at the end of 2014.

Gross advances of £51.3bn were recorded in the final three months of 2014. This was 8.1% lower than the previous quarter but included the traditionally quiet festive period.

Brian Murphy, head of lending at Mortgage Advice Bureau, said the market had been gearing up for a strong 2015.

“While mortgage lending was sluggish in the final quarter of 2014 – when gross advances fell 8.1% compared to the previous quarter – the market is geared towards greater activity in 2015, particularly in terms of consumer demand,” he said.

“The average interest rate on total amounts outstanding has fallen to its lowest point in over seven years, and consumers continue to be the winners of the mortgage price war.

“In a low rate environment – and with a base rate rise pushed further back on the horizon – borrowers are increasingly willing to take on variable rates, with the proportion of advances at fixed rates falling for the first time in over two years. However, rates will eventually hit the bottom of the curve so timing is crucial:  failure to lock in to today’s record low rates could prove costly in the long-term.”