Over the past six months costs have risen and fallen but the last three months have seen increases in the cost of the majority of mainstream products, said Mortgage Brain.
The true cost of a two-year tracker with a 90% loan-to-value (LTV) has gone up by 8% over the past three months, while a 90% LTV two-year fixed is 5% more expensive than October 2016.
Higher deposit mortgages have seen shallower rises of 1% at 60% two and three-year tracker and fixed rates, with a 2% increase for a 90% LTV three-year fixed mortgage. In cash terms, the 8% increase for the 90% two-year tracker equals £576 extra a year on a £150,000 mortgage.
However, the cost of the lowest rate five-year tracker, a Nationwide product at 1.79% at 60% LTV, is now 18% lower than three months ago representing a saving of £1,674 largely due to the competitive rate and the fact there are only seven products to compare.
However, over a four-year time span, with rates at just over all-time lows, the savings across the board are substantial with a 90% LTV two-year tracker 19% lower than January 2013 and two and five-year fixed mortgages at 90% LTV both 17% cheaper.
Mark Lofthouse (pictured), CEO of Mortgage Brain, said: “It’s perhaps still a little too early to predict that mortgage rates are rising and that this trend will continue. However, our latest analysis is starting to show signs that we may finally be moving away from the long period of record lows in terms of mortgage rates and costs to a period of stability, or potentially, rises.”