For the second quarter in a row, Mortgage Brain’s product data analysis has shown a number of cost reductions for two-, three- and five-year residential mortgages.
The cost of a two-year fixed mortgage with a 90% loan to value (LTV), for instance, is now 8% lower than it was in April 2018, and offers borrowers an annual saving of £576 on a £150,000 mortgage.
The same product with a 60% LTV now costs 3% less than it did at the start of April, as does the lowest rate 90% LTV five-year fixed rate product, at 2.19% as of 1st July 2018.
With a current rate of 1.44%, the cost of a two-year tracker with 80% LTV is now 2% lower than it was over the same period. A 60% LTV three- and five-year fixed are both 1% lower than they were in April.
According to Moneyfacts, the average two-year fixed mortgage rate last week was at 2.5332%, up from 2.5244% in June and against 2.2551% at the same time last year.
Mortgage Brain’s longer term analysis also revealed that the residential mortgage market is still in a healthy position compared to this time last year. Cost reductions have been recorded for the majority of mainstream products over the past 12 months.
The cost of the 90% LTV two-year fixed deal is now 10% lower than it was at the start of July 2017. A five-year fixed with 90% LTV is now 5% lower compared to this time 12 months ago, while a 4% reduction in cost has been recorded for a 90% LTV two-year tracker.
Mark Lofthouse, CEO of Mortgage Brain, said: “With fresh predictions for interest rates to rise again next month, the landscape could once again be on the verge of change, if and when, we revert back to seeing a period of increases in the cost of residential mortgages.
“As before though, most predictions imply that the increases will be low and gradual so dramatic changes shouldn’t be seen short term.
“Our latest data is still showing a number of good deals for first-time buyers and those looking to remortgage but with possible changes on the horizon, the picture might look different at the end of the next quarter.”