Research from Mortgage Brain showed that two-year trackers in the 60% loan-to-value bracket had dropped 41% from 1.69% to 0.99% last year, after coming down by 32% the year before.
Higher up the LTV scale two-year tracker products have reduced at a similar pace. At 90% LTV the lowest two-year tracker fell from 3.59% to 2.45% from January to December 2014.
Not all tracker products have followed this trend. The lowest rate five-year tracker at 60% LTV is now 60% higher than it was this time last year up from 1.99% in 2014 to 3.19% as of 1 January 2015.
Mark Lofthouse (pictured), CEO of Mortgage Brain, said: “The drop in mortgage rates when compared to this time last year, and in some cases this time two years ago, is welcome news to a lot of today’s potential homebuyers or those currently looking to re-mortgage their property.
“With the majority of forecasters predicting a rise in base rates in 2015 it will be interesting to see what actually happens and which way things move over the course of the next 12 months.”
Rate drops were also seen in the buy-to-let market with the lowest rate three-year tracker now 17% lower than this time last year down from 3.49% to 2.89%.
The lowest-rate three-year fixed mortgage with a 60% LTV is now 16% lower, down from 3.49% to 2.94%.
