At present, two-year fixed rate mortgage deals hover around 1 per cent; five-year fixed deals 2 per cent. Homeowners who can put down around deposits of around 40 per cent are able to get the lowest interest rates.

Commenting on the market, Matt Sanders, Gocompare.com’s mortgage spokesman, said: “First-time buyers and those looking to move house with a new mortgage should think about doing a personal finance audit before approaching a lender.

“Check your credit file, work out your income and outgoings, make sure you could afford an increase on your mortgage should the rates rise, and consider speaking to an independent mortgage adviser. Get fully armed with all the information you need before approaching a lender.

“Those who are looking to remortgage should check the small print of these record low rates. Many products have substantial upfront non-refundable arrangement fees and as the interest rates have tumbled, these fees have risen. Factor those fees into any mortgage product you are looking to take out. There are some mortgages available without upfront fees, but be aware that the interest rates on those products may not be as low. However, the slightly higher interest rate may be worth paying to avoid the upfront fee. Just compare the figures carefully before jumping ship.”