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Cost of high LTV mortgages rose over quarter – Mortgage Brain

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  • 24/04/2019
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Cost of high LTV mortgages rose over quarter – Mortgage Brain
The cost of high LTV mortgage products rose over the past three months, data showed.

 

The cost of a 90% LTV two-year fixed in April 2019 is five per cent higher than it was at the beginning of January 2019, according to Mortgage Brain’s latest product data analysis.

With a current rate of 2.36% and appealing to first-time buyers, the cost rise equates to an annualised increase of £342 on a £150,000 mortgage.

The report revealed that a 90% LTV two-year tracker and a 90% five-year fix cost one per cent more than at the beginning of the year.

The cost of an 80% LTV three- and two-year fixed as well as a two-year tracker, has increased by up to 0.5% over the same period.

However, the report showed a one per cent fall in the cost of a 60% LTV two and five-year fixed rate mortgage compared to January 2019.

Mortgage Brain’s longer-term analysis also showed a number of slight cost reductions for both high and low LTV products when compared to this time last year.

With a current rate of 2.06%, a 60% LTV two-year fixed mortgage in April 2019 is three per cent cheaper than it was in April 2018, while a 90% two and five-year fixed are both two per cent cheaper than they were 12 months ago.

Based on a £150,000 mortgage, borrowers looking to take out one of these mortgages could benefit from an annual saving of up to £198.

Mark Lofthouse, CEO of Mortgage Brain (pictured), said: “While those with small deposits are faced with a number of cost increases compared to the beginning of the year, our longer term analysis shows that the majority of borrowers can still benefit from a number of savings compared to this time last year.”

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