As Rightmove’s mortgage expert Matt Smith points out: “This can only be good news for those looking to move home and those whose fixed deal comes to an end soon.”

Rightmove highlights that the average five -year fixed mortgage rate is now 4.96% – down from 5.16% a year ago and the first time it has dipped below 5% since June 2023.

The average two-year fixed mortgage rate is now 5.29%, down from 5.42% a year ago

The average 85% LTV 5-year fixed mortgage rate is now 5.06%, down from 5.15% a year ago

The average 60% LTV 5-year fixed mortgage rate is now 4.36%, down from 4.81% a year ago

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 £1,100 per month, down from £1,118 per month a year ago

John Charcol head of marketing Nicholas Mendes picks out what he sees as the positives from the first week of 2024.

“It is really encouraging to see West One return with second charge 85% LTV products. While first charge rates have taken the limelight with competitor repricing heating up, there are plenty who are still tied into low longer term fixed deals.

“For clients unable to raise additional funds, second charges are a useful option and these latest rate and criteria changes will help many mortgage holders looking at these options”.

MPowered were also namechecked by Mendes.

“MPowered do what they do best, continually pushing the high street lenders further. Five-year fixed rates starting from 4.13% will be an eye opener and certainly push the debate further of when we can expect more lenders offer a sub-4% rate.

“Reacting to favourable market condition and passing on quickly to consumers, well done MPowered.”