According to Rightmove, pricing reductions are being seen at all LTV tiers, with two-year fixed rate starting at 4.5% at 60% LTV with the five-year fixed rate at the same tier coming to 4.17%.

All the average mortgage rates cited presuppose a product fee of £999.

This is a fall of 0.04% respectively compared to the previous week but is up from 2.28% for a two-year fixed rate at 60% LTV and 2.34% for its five-year fixed rate equivalent a year ago.

Rightmove’s mortgage expert Matt Smith says: “Average mortgage rates have continued to fall across all loan-to-value ranges for the fifth consecutive week. Due to this sustained period of rate falls, it’s now clear that this is no longer simply due to the March base rate decision, and that lenders are actively competing for business.”

Higher LTV tiers see bigger drops

At higher LTV tiers, reductions of up to 0.06% have been applied on average, with a two-year fixed rate at 85% LTV falling 0.06% to 4.89% compared to the previous week.

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At 90% LTV, the two-year fixed rate has contracted by 0.06% to 5.14% while its five-year fixed rate at the same LTV tier has decreased by the same amount 4.75%.

Smith added: “Competition is strongest in the traditional first-time buyer LTV ranges. Average rates have fallen by 0.06% week-on-week for both two and five-year fixed rates at 90% LTV, and two-year fixed rates at 85% LTV have also fallen by 0.06%. Meanwhile, five-year fixed rates at 85% LTV reduced by 0.04% this week.

“It is likely that we’ll see a continuation of the current trend of reducing rates in the immediate term, as lenders vie for business in the Spring buying season.”