The average of the lowest fixed rate mortgages has plummeted as a mortgage price war takes hold, L&C Remortgage Tracker data reveals.

The data found that the top ten lenders’ average of the best low loan-to-value (LTV) two- and five-year remortgage rates have dived since the peak in November.

The average two-year rates have fallen from a peak of 5.90% in November to 4.67% today, while five-year rates have dipped even further, to 4.32% from 5.67%.

Borrowers could now benefit from payments over £100 per month lower for a typical £150,000 repayment mortgage over 25 years.

For a two-year fixed rate today, borrowers would pay £1,308 less per annum and £1,415 less for five-year rates compared to only a few months ago.

Lender standard variable rates (SVR) continue to climb with the average of the top ten lender reversionary rates now standing at 6.73%.

This would cost homeowners almost £2,600 more per annum than the five-year fixed rate of 4.32%.

L&C says with another base rate rise expected this week variable rates are likely to climb higher still.

L&C Mortgages has also announced the launch of an exclusive five-year fixed rate at 4.15%.

The arrangement fee is £1,395, the valuation is free and there’s help with basic legal work for remortgages.

The lender notes that there is a fee-free version is available at 4.35%.

L&C Mortgages associate director David Hollingworth says: “The rollercoaster ride for mortgage borrowers continues and many may have lost track of how much-fixed rates have improved since the pandemonium following the mini-budget.”

“Funding conditions have improved and as lenders compete harder for mortgage business a price war has broken out, sending fixed rate costs plummeting. As a result, the cost of the current best-in-class fixed deals is potentially thousands per annum lower than just a few months ago.”

“That said, rates remain higher than the lows of recent years and those coming toward the end of a fixed deal will need to plan ahead. However, we expect rate cuts to continue even though another base rate increase could come as early as this week.”