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High LTV mortgage rates now double 60% LTV products

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  • 16/10/2013
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High LTV mortgage rates now double 60% LTV products
The headline rates of mortgages at 90% LTV are now more than double those products on offer at 60% LTV.

Research from Mortgage Brain found the lowest 90% LTV fixed rate product was now 2.5 times the level of a 60% LTV deal. This is because the lowest 90% two-year fix on the market is available at 3.54%, compared with 1.48% at 60% LTV.

In the tracker market the rates on 90% loan-to-value products are 112% higher than those at 60% level. The gap between the two LTV bands has increased by 21% since the start of the year but remains less noticeable in the two-year fixed market where the difference is 25%.

Mortgage Brain’s figures are calculated using the lowest rate product in each LTV band and a typical £180,000 repayment mortgage.

Mark Lofthouse, CEO of Mortgage Brain, said: “Whilst our current data shows the marked interest rate differences between LTV bands for trackers and fixed rate mortgages, our latest analysis has also shown that interest rates, on the whole, have dropped significantly over the course of the year.

“The interest rate for a 60% LTV two-year fix, for example, has dropped almost 26% since that start of the year – down from 1.99% in January to 1.48% at the start of October. Trackers with a 60% LTV have seen an even bigger rate drop – down 32% since January 2013, dropping from 2.49% to 1.69%.”

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