The average interest rate of purchase and remortgages applied for by Countrywide Group’s customers has fallen by 2.41 percentage points over the last three years to 3.71% in September 2011, its lowest rate since September 2008.

Fixed rate and tracker mortgages have become significantly cheaper, with most major lenders becoming much more competitive on pricing, with many targeting the first time buyer and remortgage market. Countrywide said this ties in with figures from the Bank of England, showing that mortgage rates across two, three and five years terms are at their lowest level over the last six years.

Nigel Stockton, financial services director at Countrywide, said: “Despite the ongoing pressures on lending institutions and the UK economy as a whole