Mortgage rates are at a seven-year low, as the average rate on two-year fixed rate mortgages has fallen to 4.52%, its lowest level since September 2003, when the average stood at 4.51%, according to Moneyfacts.

Fixed mortgage rates have been falling since September 2009 as lenders try and tempt borrowers off record low standard variable rates (SVR).

Michelle Slade, spokesperson for Moneyfacts.co.uk, said: “Many borrowers are opting to remain on record low SVRs and overpaying their mortgage rather than secure a new deal at a higher rate.