The latest analysis from Mortgage Brain highlighted that the cost of borrowing on a five-year fixed rate has dropped in price over the quarter at all loan-to-values except 80 per cent, where the cost has stayed the same.
For example at 60 per cent, 70 per cent and 90 per cent LTV the costs have fallen between 1.5 and two per cent since April.
It’s a similar story on three-year fixes, where costs are unmoved at 80 per cent LTV. At other LTV bands they have dropped, ranging from a one per cent fall at 70 per cent LTV to 1.5 per cent at 60 per cent LTV.
While two-year fixed rate deals have generally become cheaper, the scale of the falls are more modest. The biggest drop has been at 60 per cent LTV where costs have fallen by one per cent, while at 90 per cent LTV costs have dropped by just 0.24 per cent.
Again there has been no change at the 80 per cent LTV point.
The fixed rate situation is in contrast to what’s happened to average costs on two-year tracker deals however, While those borrowing at 60 per cent LTV have seen costs fall 2.48 per cent over the quarter, at all other LTV bands costs have grown by as much as 1.69 per cent.
Mark Lofthouse (pictured), chief executive officer of Mortgage Brain, commented: “Our latest residential mortgage data continues to show a number of good deals for first time buyers and those looking to remortgage, especially for those looking for a longer term deal.
“And with recent predictions that interest rates will remain on hold throughout most of 2019, the picture could well be the same for the next few months.”
