The average two-year fixed rate has dropped from 2.43 per cent to 2.42 per cent week-on-week, data collected by Moneyfacts shows.

Last month, the average two-year fixed rate was recorded at 2.43 per cent, and looking to last year, the rate was recorded at 2.52 per cent.

Average rates in the two-year 75 per cent LTV category, 80 per cent LTV category and 95 per cent LTV category recorded a decline on a weekly basis.

Meanwhile, average rates in the 60 per cent LTV category, 65 per cent LTV category, 70 per cent LTV category, 85 per cent LTV category and 90 per cent LTV category all remained unchanged week-on-week.

Turning to the average five-year fixed rates, the 65 per cent LTV category, 75 per cent LTV category, 85 per cent LTV category and the 95 per cent LTV category noted a fall over the same time period.

Average rates in the 60 per cent LTV category, 70 per cent LTV category, 80 per cent LTV category and 90 per cent LTV all remained unchanged on a weekly basis.

Moneyfacts finance expert Darren Cook says: “From the middle of December to the start of January there was very little movement in the market. However, now lenders are gently starting to amend product rates.

“The five-year market offers almost as many products as the traditionally dominant two-year market, this has resulted in increased competitive reductions to products within this range.

“Notable this week, Barclays, Halifax and Virgin Money made a series of reductions, which will likely have a knock-on effect for the smaller lenders.”