Between the beginning of December and the start of January, the overall average two and five-year fixed rate dropped to 5.93 per cent and 5.55 per cent, respectively.

It’s good news for many homeowners and prospective property buyers as the late time these rates were under six percent was in June 2023.

With the market improving, experts are sharing some tips on how homebuyers can secure “cheaper rates”.

Rachel Springall, a finance expert at Moneyfacts, described the recent changes to interest rates as a “great relief”.

She noted that those looking to get on the property ladder are most likely to benefit from the slew of rate reductions.

Ms Springall said: “Borrowers with a limited deposit or equity, such as first-time buyers, are benefiting from an increase in product choice and lower mortgage rates.

“The availability of deals at the 95 per cent loan-to-value tier, 270, has increased to the highest level since September 2022 and the average two- and five-year fixed rates at this tier are at their lowest since June 2023.

“However, if borrowers can stretch their deposit to 10 per cent then they will find greater choice and cheaper rates.”

The finance expert encouraged potential homebuyers to “seek advice” on which offers would best suit them instead of being distracted by a “headline grabbing rate”.

In the last year-and-a-half, the Bank of England has opted to raise the base rate multiple times to try to slow inflation.

With the Consumer Price Index (CPI) rate easing to 3.9 per cent, the central bank has chosen to halt its series of interest rate hikes in recent months.

As it stands, the UK’s base rate sitting at 5.25 per cent but analysts are predicting the Bank of England will slash rates in the later half of the year.