The latest rate watch data from Moneyfacts also shows the average two-year fix fell by 4bps to 5.55% and the five-year rate by 2bps over the week to 5.54%.

Some loan-to-value tiers saw even steeper reductions.

The average three-year fixed at 65% LTV plummeted 18bps to 4.7% and the average two-year fixed at 50% LTV plunged 14bps to 4.99%.

For borrowers with small deposits there was some welcome news as the average two-year fixed rate at 95% LTV dropped from 6.2% to 6.15% and the 90% LTV the rate fell from 5.83% to 5.77%.

Moneyfacts finance expert Rachel Springall says: “Building societies dominated mortgage rate cuts this week, making waves to compete with attractive packages too.

“Alongside the moves there were major high street banks also making cuts, great news for borrowers.

“There were twenty different lenders cutting fixed mortgage rates this week.

“Out of the biggest high street banks, Barclays made cuts of up to 20bps, with NatWest shaving off up to 26bps and HSBC also cut by up to 10bps.”

Springall welcomes moves by some building societies to lower rates on high LTV deals.

She says: “First-time buyers remain the lifeblood of the mortgage market, so any rate cuts, fee reductions or incentive packages can really help them save on the overall cost of a deal.

“Skipton Building Society made cuts of up to 30bps, with its 95% deal cut by 12bps to 5.19% fixed for two years, securing its place as a Moneyfacts Best Buy.

“Swap rates have been coming down over recent days, so it is somewhat inevitable to see lenders make efforts to reprice their fixed mortgages, so overall, a positive week.”

But Springall warns: “The current state of play does not rule out a possible rise to the Bank of England Base Rate if inflationary pressures worsen, so indecision could be the biggest enemy for borrowers this year.”

This week’s rate reductions:

• Accord Mortgages: reduced by up to 18bps
• Barclays Mortgage: reduced by up to 20bps
• Coventry Building Society: reduced by up to 42bps
• Darlington Building Society: reduced by up to 20bps and increased by up to 10bps
• first direct: reduced by up to 16bps
• Gen H: reduced by up to 15bps
• HSBC: reduced by up to 10bps
• Kensington: reduced by up to 30bps
• Leeds Building Society: reduced by up to 16bps
• LiveMore Capital: reduced by up to 10bps
• Nationwide Building Society: reduced by up to 25bps
• NatWest: reduced by up to 26bps
• NatWest Intermediary Solutions: reduced by up to 26bps
• Pepper Money: reduced by up to 71bps
• Principality Building Society: reduced by up to 50bps
• Royal Bank of Scotland: reduced by up to 26bps
• Skipton Building Society: reduced by up to 30bps
• Tipton & Coseley Building Society: reduced by up to 14bps
• TSB: reduced by up to 30bps
• Yorkshire Building Society: reduced by up to 14bps