The average two-year fixed rate deal has fallen to its lowest level in 15 months, according to Moneyfacts.co.uk.
The average rate for a two-year fix last May was 6.59%, this has now dropped to 4.61%.
Three-year fixed rate deals are now priced at an average of 5.3%, while five-year fixed rates are at 5.74%.
But the low rates have not been enough to tempt borrowers away from their lender’s SVR.
Moneyfacts.co.uk calculates that based on a £150,000 mortgage borrowers would save £164.38 a month by reverting to the current average SVR of 4.66%.
Those reverting to a low SVR of 2.50% would save £330.18 per month.
A spokesman for Moneyfacts.co.uk says: “Lenders are easing their criteria and competition is returning to the market, which should be a perfect platform for a resurgent mortgage market.
“But lenders are competing for a reducing amount of business and there is little incentive for borrowers to remortgage to another mortgage deal.”