And TSB last week cut its two year fix from 1.54 per cent to 1.44 per cent.
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Rates are falling fast ahead of the expected cut in Bank of England base rate from 0.5 per cent to 0.25 per cent later this week.
But financial markets believe interest rates are virtually guaranteed to be cut for the first time in seven years on Thursday.
“Borrowing costs remain low so mortgage costs remain low and may become even more affordable”, he said.
Governor Mark Carney is expected to announce a drop to 0.25% in response to the economic turmoil caused by the Brexit victory in the European Union referendum in June.
The move would be the first change to interest rates since March 2009, a significant boost for homeowners but not so good for savers.
Last month, the Bank of England voted to keep interest rates on hold, but many within the industry said a drop below the current 0.5% base rate was inevitable.
What does the interest rate cut mean for savers?
Fixed rate mortgages have fallen by an average of 2.5 per cent since 2010, according to research by Legal & General Mortgage Club.
However a canvasing of opinion by The Yorkshire Post revealed little appetitie for the move, with experts warning of risky consequences if the bank reduces the rate any further than the level it has now been at for eight years.
Split up, the Refinance Index decreased 4% from the previous week, as the seasonally adjusted Purchase Index decreased 2% from one week earlier to the lowest level since February 2016.
The CML’s estimates suggest over 1.5 million existing mortgages are bank rate trackers.
Virgin Money Champion Bond pays 1.25 per cent (1 per cent).
Charlotte Nelson of Moneyfacts, the data firm, said she had noticed cuts being made by building societies in the past week.
The average five year mortgage has also been cut to 3.08 per cent, down from 3.24 per cent a year ago and 5.43 per cent five years ago.
David Hollingworth, from mortgage broker London & Country said: ‘Competition has been extremely strong and banks are fighting hard to attract business.
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“If inflation spikes interest rates will have to go up and while this is good for savers and pension funds, many who have borrowed at incredibly cheap rates may find they have over extended themselves and where we go then is yet another huge uncertainty to add into an already uncertain economic environment”. With the base rate expected to stay lower for longer, this has also reduced funding costs for lenders which are now passing on savings to customers’. On the high street, the best rate comes from Coventry Building Society at 1.15% (0.92%).
