Two-year fixed rates have been the biggest mover, with average rates falling by 6 basis points in the past week and down by 22bps over the month.

Moneyfacts’ latest weekly rate watch figures show that prices continued to edge down in most product categories. Several major lenders including NatWest, Barclays, HSBC, Halifax and Coventry have launched sub-4% five-year fixed rates, joining Nationwide, which was the first to do so.

The average two-year fixed rate across all LTV tiers has come down by 6bps from 5.76% to 5.7% since last Friday. The overall average rate has been edging down week by week and is now 22 basis points below where it stood a month ago at 5.92%.

Moneyfacts finance expert Rachel Springall said: “This week the mortgage market has been catching up to the base rate cut, with more cuts to trackers and SVRs, but there were also more lenders slashing fixed rates, which include more sub-4% fixed deals.

“Two weeks ago, Nationwide became the first lender to offer a sub 4% mortgage for the first time in months, closely followed by NatWest just last week, and HSBC, First Direct, Barclays, Coventry, Halifax and Lloyds joined the fray this week.”