According to the latest figures from Moneyfacts, the average two-year fixed rate has fallen by 0.03 per cent from 2.52 per cent in January 2019 to 2.49 per cent in June.

Meanwhile the average five-year fixed rate decreased by 0.09 per cent from 2.94 per cent to 2.85 per cent over the same period, .

In contrast, the gap between the average five-year fix and the typical 10-year fix has increased by 0.04 per cent.

This is despite the 10-year average rate falling by 0.05 per cent from 3.05 per cent in January 2019 to 3 per cent in June, the lowest recorded average 10-year fixed rate since February 2018.

Darren Cook from Moneyfacts said that with the difference between the average two and five-year fixed rate at a seven-year low, the difference in the monthly repayment between these fixed terms will also be narrow.

He added: “For example, on a repayment mortgage advance of £200,000 over a 25-year term at the average fixed rate for each respective term would see the average two-year repayment this month stand at £896.23, while the five-year average repayment amount would be £932.89, totalling a difference of £36.66 per month.

“Using the same mortgage criteria, the difference between the monthly repayments of the average five-year and 10-year mortgage rate at £948.42, this monthly difference is just £15.53.”

Cook noted that current mortgage rates appear to be competitive across the board, allowing borrowers the flexibility to choose whether to fix repayments for either the short, medium or longer-term initial rate periods.

“However, borrowers must also remember to consider other factors, such as potentially greater fee expenses if they opt for a shorter initial fixed payment term and have to switch deals more frequently or the possible implication of mortgage tie-in costs if they wish to shop elsewhere during a longer initial rate period,” he added.