Research from Mortgage Brain showed that two-year trackers in the 60% loan-to-value bracket had dropped 41% from 1.69% to 0.99% last year, after coming down by 32% the year before.

Higher up the LTV scale two-year tracker products have reduced at a similar pace. At 90% LTV the lowest two-year tracker fell from 3.59% to 2.45% from January to December 2014.

Not all tracker products have followed this trend. The lowest rate five-year tracker at 60% LTV is now 60% higher than it was this time last year up from 1.99% in 2014 to 3.19% as of 1 January 2015.

Mark Lofthouse (pictured), CEO of Mortgage Brain, said: “The drop in mortgage rates when compared to this time last year, and in some cases this time two years ago, is welcome news to a lot of today’s potential homebuyers or those currently looking to re-mortgage their property.

“With the majority of forecasters predicting a rise in base rates in 2015 it will be interesting to see what actually happens and which way things move over the course of the next 12 months.”

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Rate drops were also seen in the buy-to-let market with the lowest rate three-year tracker now 17% lower than this time last year down from 3.49% to 2.89%.

The lowest-rate three-year fixed mortgage with a 60% LTV is now 16% lower, down from 3.49% to 2.94%.