According to Moneyfacts, the average two-year fixed rate dropped by 0.14 per cent in September to 2.38 per cent, while the average five-year fixed rate fell by 0.12 per cent to 2.63 per cent.

This was on a par with the largest month-on-month reductions which took place from April to May last year, where two-year fixed rates fell by 0.27 per cent and five-year fixed rate dropped by 0.31 per cent.

This was also the lowest each average rate has been in 11 months, with rates of 2.38 per cent and 2.62 per cent recorded in October for a two and five-year fixed respectively.

Additionally, the number of available mortgages nearly doubled compared to the same period last year, with total products coming to 4,812.

The largest product increase was recorded at the 90 per cent loan to value (LTV) tier, rising from 62 in September last year to 579 this month. This is still below 2019 levels, which came to 774.

Products in the 95 per cent LTV tier also grew dramatically from 14 in September last year to 283 this month. This compares to the same period in 2019 when products numbered 380.

Products in the 60 per cent LTV tier increased slightly from last year, rising from 441 in September last year to 587 this month. This is roughly in line with 2019 at 580.

Rates across all tiers fell, with the 95 per cent LTV tier recording the largest decreases with average two-year fixed rate falling from 4.48 per cent in September last year to 3.57 per cent this year. The average five-year fixed at this tier declined from 4.02 per cent to 3.83 per cent annually.

Average rates for two-year fixed rate at 90 per cent LTV reduced from 3.32 per cent in September last year to 2.85 per cent this year. Five-year fixed rates at the same tier have decreased from 3.5 per cent to 3.23 per cent in the same period.

At 60 per cent LTV, the average two-year fixed rate was pegged at 1.51 per cent, down from 1.77 per cent last year. The average five-year fixed at 60 per cent LTV was 2.01 per cent in September last year and now 1.71 per cent.

Moneyfacts’ spokesperson Eleanor Williams said September was the eleventh consecutive month of growth in the number of mortgage products. She also said options were at their highest since May last year.

She added that significant expansion in the 90 and 95 per cent LTV brackets had improved availability for borrowers, and the lower rates indicated lenders may be “competing for business in this area”.

Williams said: “It is unknown whether borrowing levels will subdue in the months ahead, accounting for a seasonal slowdown and the fact that many consumers are returning to work or taking a much-needed break, but there seems to be no signs of lenders easing off the rate war.

“Those looking to move will need to act quickly in their property search and those looking to remortgage could save a significant sum by taking advantage of a low-rate deal. Lenders are keen to take on new business and due to the market volatility, borrowers would be wise to seek independent advice to navigate the growing choice to ensure they find the most appropriate mortgage package for their circumstances.”