In October, Moneyfacts recorded the average rate for a two-year fixed at 2.44 per cent while exactly a year ago, it stood at 2.51 per cent.
This is down from the high of 2.52 per cent seen in December 2018.
Lenders are getting worried
Mitul Patel, mortgage adviser at Lemon Tree Financial, said lenders were competing with each other heavily but said he did not believe it had much to do with what was happening in the outside world.
He said: “They’re getting lower direct business volumes and are getting a bit worried. Usually this [rates reductions] happens in January where they want to meet targets for the year, so they do sales but I think it’s been brought forward.
“I spoke to one high street bank and the manager said it’s very slow in the branches. The lenders must be worried about volumes and uncertainty so they’re getting cutthroat with each other.
“Will it last? I don’t know, but it’s definitely in the favour of brokers and clients so we’ll just go with it. I think it will probably continue until January or February,” he added.