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New figures from Moneyfacts show the overall average two and five-year fixed mortgage rates fell between the start of December and the start of January to 5.93% and 5.55% respectively.

The last time these were below 6% was in June 2023.

Product choice overall rose month-on-month, for a sixth consecutive month, to 5,899 options, the highest level of availability in more than 15 years. The last time there were more deals available was March 2008.

The availability of deals at the 95% loan-to-value tier (270) has increased to the highest level since September 2022 (274), Moneyfacts said.

Meanwhile, the average shelf-life of a mortgage product rose to 21 days, the highest figure since June 2023 (22 days).

Rachel Springall, finance expert at Moneyfacts, said: “The consecutive reductions to the overall average two- and five-year fixed mortgage rates will be of great relief for borrowers looking to refinance this year.

“The volatility surrounding mortgage rate pricing eased, as the average mortgage shelf life rose from 17 days to 21 days, the highest figure recorded in over six months. There are big expectations for fixed mortgage rates to fall in the coming weeks, so some borrowers may choose to wait patiently for the right time to change their deal or buy their first home.

“A rise in choice and cheaper mortgage rates are promising signs for those looking to refinance this year. However, those coming off either a two- or five-year fixed mortgage will be paying around 3% more on their mortgage, based on our average rates, when they lock into a similar term for peace of mind. Despite this, it would be cheaper than reverting to a standard variable rate (SVR), which charge over 8% on average.”