The average five-year fixed mortgage rate is 4.88%, down from 6.08% a year ago, Rightmove’s weekly tracker reveals.

The tracker also found that the average two-year fixed rate is now 5.27%, down from 6.60% a year ago while the average 85% LTV five-year fixed rate is now 4.92%, down from 6.12% a year ago.

Meanwhile, the average 60% LTV five-year fixed rate is now 4.21%, down from 5.83% a year ago.

Data also shows that the average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed, 85% LTV mortgage, is now £1,124 per month, down from £1,249 per month a year ago.

Rightmove mortgage expert Matt Smith says: “We’ve seen average mortgage rates drop at a pace not seen for a while this week, faster than many expected as lender competition hots up.”

“The first sub 4% rate for those with larger deposits and prepared to pay a higher fee is the headline-grabber, but we’ve also seen some notable drops in rates in other loan-to-value brackets which should benefit more mass-market movers.”

“It’s interesting to see this competition for business increase even before the Base Rate decision, and though there’s still only around a 50% chance the Base Rate will be cut next week, if the current positive market sentiment continues we could see further mortgage rate cuts.”