Yesterday was a day when there was some good news for home owners.

Nationwide, the UK's biggest building society cut rates by up to one per cent on some of its 90 and 95 per cent loan to value deals. Barclays also cut some of its rates by up to 0.1 per cent and also reduced arrangement fees. Northern Rock reduced its deals by up to 0.57 per cent while Halifax and Skipton were also building societies that reduced their rate.

It isn't just the larger building societies that are reigning it in either. Smaller names are getting in on the act to make home owners have an easier time of it.

The base rate, which is at the lowest since the second world war, has been forecasted by some to stay the same until  next year and maybe beyond.

The average cost of a two-year fixed rate mortgage has already decreased to 4.5 per cent compared with 4.58 per cent in March. Five-year fixed rate loans are now on average 5.62 per cent compared with 5.66 per cent two months previous.