The average two-year fix fell 0.02% to hit 4.98%, falling below 5% for the first time since the notorious Truss mini budget in 2022.

Three-year and five-year fixes dropped just 0.01% this week to an average of 4.89% and 5% respectively, while 10-year fixes were unchanged at an average of 5.66%.

However, individual lenders made some generous rate cuts to fixed rate products following the base rate reduction, some as large as 25%.

Significant cuts by were made by Lloyds Bank, by up to 0.17%, Barclays by up to 0.40%, NatWest by up to 0.16% and Santander by up to 0.12%,

Building societies also made big moves with fixes, with the West Brom and Newcastle introducing reductions of up to 0.25%, Skipton cutting rates by up to 0.14% and the Progressive by up to 0.60%.

Meanwhile, Accord made some sizeable fixed rate cuts of up to 0.40% and Atom Bank reduced fixed deals by up to 0.15%.

Moneyfacts spokesperson Caitlyn Eastell says: “It has now been two-years since the average two-year fixed mortgage rate reached a 15-year high, and the millions of borrowers due to refinance this year will be relieved to see rates are finally coming down.

“On average, remortgage customers coming off high mortgage rates could now save just over £280 on their monthly repayments. However, further reductions may be ‘low and slow’ because swap rates jumped after the latest base rate decision and are currently sitting just below their 30-day highs.”