The average two-year fixed rate has fallen by 108 basis points from 6.85 to 5.77% over the past year since the Bank of England base rate has remained frozen at 5.25%.

Analysis from Moneyfacts also shows the average five-year fixed rate has dropped by 99bps from 6.37% to 5.38% over the same period.

Ten-year fixed rates have increased by 4bps from 5.89% to 5.93%.

Fixed rates previously dropped to lower levels and have edged upwards in the six months since February, but remain substantially below where they stood in August 2023 when the base rate first rose to 5.25%.

But average standard variable rates have increased over the past year from 7.85% to 8.16%.

Moneyfactscompare.co.uk personal finance expert Rachel Springall says: “A year has now gone by since the Bank of England last increased the base rate, but other influences have been at play to impact the mortgage market.

“Fixed mortgage rates have been falling at a steady pace, with lenders feeling more encouraged to reprice their deals due to lower swap rates.

“Consequently, the average rates on a two and five-year fixed rate mortgage have both decreased month on month for the first time in six months.

But she adds: “Borrowers coming off a deal this year must acknowledge that they will need to set aside more of their income to cover higher repayments.

“On average, a two-year fixed deal was priced at 3.95% in August 2022, and back in August 2019 a five-year fixed was 2.84%.

“However, it is still cheaper to lock into a fixed mortgage than sit on a revert rate. “The SVR has sat above 8% for almost an entire year and has almost doubled since the Bank of England started increasing base rate back in December 2021.”

She says that for a £250,000 mortgage with 25-year term on the average SVR, this amounts to an extra cost of £380 per month compared to the average two-year fixed rate.