The falls reflect the drop in money market rates, which largely determine the cost of fixed deals.
The Bank of England's Funding for Lending scheme, which came into effect in July, has also cut the banks' funding costs.
David Hollingworth, of L&C Mortgages, a broker, says: "The cost of all fixes is falling, but the five-year deals are particularly good value. A five-year fix at below 3% is a record low and there has been a surge in demand from borrowers who are keen to lock into such cheap rates."
A number of lenders have chopped their fixes over recent weeks. Santander is offering a loan fixed at 2.99% for five years. However, you must have an existing Santander mortgage or current account to qualify.
There is also a £1495 fee and the minimum deposit is 40%.
NatWest's five-year fix is a competitive 3.09% – and you do not have to be an existing customer. The minimum deposit is 40%, but the fee is a hefty £2495. If you want a loan with a smaller fee, there's a five-year fix from HSBC at 3.29%.
Again, the minimum deposit is 40% and the fee is £499.
Short-term fixes are cheaper. Yorkshire Building Society, for example, has a two-year fix at 2.84%, with a minimum deposit of 25%. Plus there is an £800 product fee and a booking fee of £195. First Direct has also recently launched a three-year fix at 2.74% with a £1499 fee.
But the gap between the fixes is narrowing, so you do not have to pay much more to lock in for longer. Many experts, therefore, favour the five-year deals because they offer greater protection against rate rises.
Ray Boulger of John Charcol, a mortgage broker, says: "There is now minimal difference between rates for the best two, three and five year fixed rate mortgages. In general, we think five-year fixed rates tend to offer the best value, although obviously individual circumstances will sometimes dictate other choices."
The gap between fixed and variable loans is also closing. Tracker loans that follow the base rate are still among the best buys.
For example, HSBC has a tracker pegged at 2.14 percentage points above the base rate to give a pay rate of 2.64%.
Mr Hollingworth says: "If you want the very cheapest loan, then a tracker is the obvious choice. But many borrowers are making strategic decisions now that fixed rates have come down. They are willing to pay a little bit extra for peace of mind."
A number of lenders are also putting up their standard variable rates (SVRs). Santander, for example, is raising its SVR from 4.24% to 4.74% in October.
David Carmichael, director of Glasgow mortgage specialists Taylor Carmichael Financial Services, says: "In recent weeks the debate as to whether tracking or fixing is best for clients has intensified as we see some exceptional fixed-rate options appearing.
"Yes, base rates may stay low for a while yet, but with Santander, the most recent brand to announce an increase in its SVR, there are now fixed rates available that are similar to the tracker pay rates and in many cases cheaper than SVRs.
"In a challenging economic environment, many homeowners are keen to have their biggest monthly commitment on a fixed payment, particularly as trends indicate that their lender may increase their variable rate in the short term."
The keenest rates on all mortgages are reserved for borrowers with a hefty deposit. If you can only put down a 10% deposit, the cheapest five-year deal is from Royal Bank of Scotland at 4.79% and no fee, but it is available exclusively to first-time buyers. Otherwise, there's a five-year fix from First Direct at 4.99%, again with no fee. Borrowers with a smaller deposit of 5% can expect to pay more. Newcastle Building Society offers one of the best buys at 5.99% fixed for five years, with a fee of £690.
Deposit demands make it particularly difficult for first-time buyers to get a foot on the housing ladder – and Scottish borrowers do not expect to buy their first home until the age of 40, according to research by Post Office Mortgages. Borrowers in the North East of England also anticipate a wait until 40, much later than the West Midlands at 29 and London at 33.
However, the number of first-time buyers in Scotland rose in the second quarter of 2012, bucking the overall UK trend, according to the Council of Mortgage Lenders in Scotland.
The number of first-time buyers jumped by 20% compared to the first quarter of 2012 and by 9% compared with the same quarter in 2011.