The Times reports the bank’s latest poll of lenders found that many mortgage deals became “significantly” cheaper between January and March. Lenders also indicated they would drop further in the second quarter.

The report said several rates are at record lows with Yorkshire Building Society offering an interest rate of 2.59% on its five-year fixed-rate product, with Chelsea Building Society offering 1.74% on its two-year fixed rate mortgage.

The availability of mortgages has also increased, BoE data found. Lenders suggest the trend will continue .