Nationwide, Barclays and Halifax cut mortgage rates even though the Bank of England is expected to raise rates on Thursday

Virgin Money is also preparing rate cuts of up to 0.17 per cent, adding to a wave of reductions driven partly by lenders competing in a sluggish housing market.

A data graphic showing mortgage rates from major lenders, as broker Stephen Perkins cautioned borrowers against expecting mortgage rates to move in lockstep with the base rate in either direction.

Barclays has trimmed its rates by up to 0.3 per cent, with its lowest available deal now at 4.89 per cent — the same floor that Nationwide hit after cutting its fixed deals by up to 0.15 per cent from today. Halifax, Britain's biggest mortgage lender, brought its rates down by as much as 0.22 per cent, leaving its cheapest option at 4.93 per cent. Virgin Money is due to follow, with reductions of up to 0.17 per cent adding further competitive pressure on rival lenders.

The moves come despite average two-year and five-year fixed rates remaining near 6 per cent for most borrowers.

Deals below 5 per cent are accessible only to those with a deposit or equity stake of at least 40 per cent, putting them beyond the reach of most first-time buyers.

Broker Stephen Perkins warned: 'Borrowers should not assume mortgage rates automatically follow the base rate in either direction.'

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