Following the central bank’s decision earlier this month, Satander announced it would apply the full reduction to its SVR from next month, taking the rate to 7.25pc.

At the same time, fixed-rate mortgages have fallen over the past month as the Bank of England’s base rate has come down and lenders compete for business. NatWest is offering a five-year fixed rate mortgage at 3.83pc, which is less than half the average standard variable rate.

The majority of Britain’s largest mortgage lenders are now offering fixed rates of less than 4pc in a boost for borrowers.

However, the market is yet to drop to the rates seen at the start of the year when the market was pricing in multiple Bank Rate cuts. In January, HSBC offered a five-year fix of 3.76pc.

In recent days, lenders TSB and Halifax have reduced rates on their fixed mortgages.

There is more good news for homeowners as house prices are recovering after a sluggish start to the year. Prices rose for the fourth consecutive month in June, as momentum returned to the market following eight months of annual price falls.

The average price tag for a home increased by 2.7pc, taking the average cost of a home to £288,000, the Office for National Statistics (ONS) said.

Chris Sykes from Private Finance said: “I think that it is fair to say SVRs are a rip-off. But it is very rare that a client should ever be on one and if they are it should be for an incredibly short period of time, such as two months between the end of a product and a property sale.

“If you want variability and expect rates to reduce, then a tracker would almost always be a better product than an SVR.”