According to the Moneyfacts research:
2-year fixed deals are at an average of 4.32%;
3-year fixed are at 4.92%;
5-year fixed at 5.29%;
And 2-year trackers at 3.37%
Michelle Slade, spokeswoman at Moneyfacts, said: “Earlier this year the market expected a rise in bank base rate that saw mortgage rates start to rise.
“An imminent rise in bank base rate now appears unlikely and the cost of funding on the swap rate market has reduced.
“This reduction in funding costs has led to average mortgage rates falling to their lowest level since Moneyfacts started recording rates in 1988.
“Lenders appear to be applying cuts equally across all LTV tiers, which is good news for first-time buyers, as previously cuts were only being applied to the lower LTV bands.
“While rates may still fall slightly further, it is likely that some lenders will instead opt to make existing competitive deals available to borrowers with smaller deposits.
“Unfortunately for borrowers, lenders don’t appear to be passing the full fall in the cost of funding on to lower mortgage rates.
“The spread between the cost of funding and average mortgage rates now stands at its highest level since December 2010.
“Lenders are always slower at bringing rates down than they are at raising them and as soon as the market expects a base rate rise, mortgage rates will start to increase again.
“If borrowers delay too long to secure a new mortgage deal, they could find that they miss out on some of the lowest rates ever seen.”
