Since the start of August 2018, the cost of a 70% and 80% loan to value (LTV) two-year tracker has risen by 4%, while its 60% and 90% counterparts have increased by 3% over the same period, according to analysis from Mortgage Brain.
Based on a £150,000 mortgage, borrowers looking to take out one of these mortgages now face an annualised increase of up to £288.
With a current rate of 2.27%, the cost of a 60% LTV five year fixed mortgage is now 2% higher than it was over the same period, while an increase of up to 1% in cost has been recorded for some two, three and five-year fixed mortgages.
The analysis also found that the cost of the 60% two-year tracker is now 5% higher than it was at the start of November 2017, and a 2% increase in cost has been recorded for some two and five-year fixed rate mortgages too.
Mark Lofthouse, CEO of Mortgage Brain, said that with the Bank of England maintaining the base rate at 0.75% for the third consecutive month it’s looking more and more likely that any future rate increases will be at a slow and gradual pace.
He added: “A lot of the movement that we saw in our latest product analysis has happened since the start of September, however, so once again, the UK mortgage market could be on the verge of change where we revert back to seeing a period of increases in the cost of residential mortgages.”