Two providers have even launched sub-4% mortgages, although these eye-catching rates may not remain on the market for very long.
Read on to discover which providers are cutting rates and for advice on choosing the right fixed term for your mortgage.
Sub-4% mortgages are back
The headline-grabbing news is the return of sub-4% mortgages, with Barclays and Santander both launching deals with initial rates of 3.99%.
It says this is down to an increase in funding costs, but it's often the case that banks withdraw these kinds of deals quickly after a deluge of applications.
Barclays is offering 3.99% on a five-year fix at up to 60% LTV, but it's only available to people with a Barclays Premier account, which requires an annual income of £75,000 or savings of £100,000.
Other providers have made smaller cuts to their rates, including Halifax, Nationwide, NatWest and Virgin Money.
The cheapest mortgage rates
The best rates currently available vary significantly depending on the size of your deposit and LTV.
For a two-year fix, market-leading rates range from 4.23% (at 60% LTV) to 5.45% (at 95% LTV). For a five-year fix, the best rates range from 3.99% (60% LTV) to 5.11% (95% LTV).
Find out more: .Will the base rate fall again in March?
On 6 February, the base rate dropped from 4.75% to 4.5% after a 5-2 vote from the Bank of England's Monetary Policy Committee (MPC). Two members voted for a bigger cut of 0.5 percentage points.
This month's cut was widely expected after a fall in inflation, and rate cuts by the European Central Bank and United States Federal Reserve.
However, the Bank of England's chief economist, Huw Pill, has poured cold water on the prospect of a fiurther cuts being imminent, stating that the MPC will adopt a 'gradual and careful approach' to rate drops.
.How does the fixed term impact repayments?
One of the biggest decisions when choosing a mortgage is whether to fix for two or five years.
We've analysed estimated monthly costs of the cheapest two-year and five-year fixed-rate mortgage at three LTV levels.
Our calculations assume you're borrowing £250,000 over a 25-year term.
However, the difference jumps to £120 for a mortgage at 85% LTV, meaning borrowers with smaller deposits are currently facing more volatility in rates.
Factors to consider when choosing a fixed term
The events of the past few years have shown just how volatile the mortgage market can be.
Opting for a longer fixed term can provide stability, shielding you from market fluctuations.
However, if you're comfortable with the associated risk, a two-year fix will give you the flexibility to search for a new deal sooner, which will be welcome if rates drop.
If you're thinking of moving in the next few years, consider a shorter-term fix, as five-year deals usually come with early repayment charges.
source https://www.which.co.uk/news/article/two-weeks-since-the-base-rate-cut-whats-happened-to-mortgage-rates-ahQIj9p69F0h