New figures suggest that mortgage rates are continuing to fall despite growing expectations of a base rate hike.
There was a further drop in mortgage rates in the three months to 1 July, according to new quarterly figures released by UKMortgages.
Its analysis is based on the lowest rate for a £150,000 loan and shows that rates on both fixed and tracker mortgages have never been lower.
The lowest two-year tracker now offers the best overall rate on the market at 0.98%.
This is despite separate reports suggesting that mortgage rates are creeping up ahead of today's key meeting by the Bank of England's monetary policy committee, which is expected to see two members vote for an immediate rate hike.
UKMortgages figures show the interest rate for a three-year fixed product at 80% LTV has fallen from 2.29% to 1.49%, a drop of 35% in just three months.
That equates to an annual saving of £1,725 on a £150,000 mortgage.
In April 2015 the cheapest deal to 60% LTV charged 1.78%, that has now fallen to 1.57%, saving the borrower £1,230 a year.
First-time buyers have also benefited from falling mortgage rates.
The lowest-rate two-year fixed rate to 90% LTV now charges 2.48%, down from 2.69% in April.
At the other end of the LTV scale, a two-year tracker is available at 0.98%.
Mark Lofthouse, chief executive of UKMortgages, said: “Our latest data is showing some substantial rate drops over the past three months, with many products now offering extremely low interest rates.
“There’s no doubt that these figures are excellent news for borrowers across the market and while historically, products with a 90% LTV ratio led the field in terms of rate drops, our current data is showing that products with a 60% LTV are starting to take the charge with big rate reductions across the board over the past three months.”
While residential mortgages are falling, rates on buy-to-let deals have largely remained static over the last three months.