"It appears that this increasing number of products this month, and subsequent intensifying competition, has driven this average variable rate down."
The fall in rates comes as the number of tracker mortgages available on the market has increased by 18 over the past month to 203.
Of the products currently on offer, 123 products are available to borrowers who require a maximum LTV of 75% or below while the remaining 80 products are available to borrowers who require a mortgage of between 80% and 95% LTV.
Darren Cook, finance expert at Moneyfacts, said: “It appears that this increasing number of products this month, and subsequent intensifying competition, has driven this average variable rate down.
“As expected, the best two-year variable tracker rates can be found at a low-risk tier of maximum 60% LTV, where the average rate currently stands at 1.72%. In comparison, the average two-year fixed rate at maximum 60% LTV is currently 1.90%, which is 0.18% higher than its variable counterpart average.
“Markets are forecasting just a single interest rate increase by 2021, but with current economic conditions so unpredictable, this timescale may shorten and variable mortgage rates could increase sooner as a consequence. Therefore, those considering a variable rate tracker mortgage should always factor in any rate rises that could affect whether they can afford the monthly repayments for the length of their term.”
