It began in the run up to an anticipated Bank Rate rise by the Bank of England earlier this month, which ultimately failed to materialise, but continued even after Threadneedle Street maintained its historically low rate of 0.1pc.

“Lenders probably have room to keep bringing prices down for first-time buyers, while still making a profit,” Mr Harris said.

“This isn’t the case with bigger deposit deals, because these have been very aggressively priced since the summer.”

If the Bank Rate is increased next month, it will be the second December rise in 45 years.

Doug Miller, of the broker Lansdown Financial Services, said that lenders often cut prices ahead of the festive season. He added that it could be a “very opportunistic time of year” to secure a mortgage deal.

“All banks and building societies will have targets for each year, based on the number of people and amount of mortgage lending they want to approve,” Mr Miller said.

“As we head towards the end of the year many lenders will start offering cheaper deals to boost the amount of applications they receive and hit these targets, with rates then being withdrawn as we head into the new year.”

Lenders have also contended with a slowing property market and borrowers with small deposits who need larger mortgages, typically at higher rates, are more lucrative.

Mr Miller added: “The key thing to remember is that even once you have applied, you can still change your mortgage if a better deal becomes available.”