Fixed rate mortgages have fallen by an average of 2.5 per cent since 2010, according to research by Legal & General Mortgage Club.
Average monthly fixed rates have fallen by 2.23 per cent for two-year fixed mortgages.
By comparison, rates on five-year fixed loans have also seen a consistent decrease, falling close to 3 per cent despite the base rate remaining at 0.5 per cent since 2009.
L&G found rates fell on average 0.4 per cent every year, as the UK continued to enjoy a record low base rate of 0.5 per cent.
But the overall downwards trajectory did see some upswings.
These tied in to market turbulence, such as banks’ stress testing issues in early 2012 that affected lenders’ capital and the availability of funds.
That led to two-year fixes rising from 2.92 per cent in September 2011 to 3.74 per cent in June 2012.
The results also show a marked fall in fixed rates in the run-up to June’s EU referendum. This was due to speculation the Bank of England would could base rate after the result.
Average two-year fixed rates fell from 1.88 per cent to 1.74 per cent in this period, while five-year fixed rates saw a fall from 2.71 per cent to 2.57 per cent.
These reductions indicate had already begun to price in a potential drop in their mortgage rates well before the Bank’s decision.
Legal & General Mortgage Club director Jeremy Duncombe says: “It’s clear from these results that the Bank of England’s base rate is not the defining factor in deciding mortgage interest rates.
“For all the speculation about the impact of an impending base rate cut, these figures clearly show that lenders have already priced in a rate reduction on their two-year and five-year fixed rate mortgages. It’s therefore unlikely that a reduction in interest rates by the Bank of England will see a further significant fall in mortgage rates.”
“Even if base rate is cut, there is no guarantee that SVRs would also fall , so now remains a great time for borrowers to consider their options, particularly if they are coming to the end of their mortgage term.”