The data from finance comparison website, Moneyfacts.co.uk, showed this competition appears to have also resulted in a fall in mortgage product fees at most loan-to-value (LTV) tiers as well. The average product fee for maximum 65 per cent LTV fell the furthest, recording a £262 drop since July last year to £881.
The average product fee at the highly competitive maximum 95 per cent LTV tier also fell, declining by £46 over the past 12 months to stand at £914.
| Two-year fixed rate mortgages | ||||||
| LTV | Number of products available | Products with no product fee | Average product fee* | |||
| Jul-19 | Jul-18 | Jul-19 | Jul-18 | Jul-19 | Jul-18 | |
| 95 per cent | 144 | 122 | 88 | 62 | £914 | £960 |
| 90 per cent | 291 | 276 | 131 | 107 | £985 | £1,002 |
| 85 per cent | 264 | 238 | 109 | 91 | £987 | £1,020 |
| 80 per cent | 230 | 231 | 86 | 87 | £1,062 | £1,083 |
| 75 per cent | 284 | 280 | 97 | 97 | £1,055 | £1,088 |
| 70 per cent | 97 | 93 | 27 | 27 | £1,198 | £1,174 |
| 65 per cent | 26 | 24 | 10 | 6 | £881 | £1,143 |
| 60 per cent | 187 | 180 | 65 | 60 | £1,208 | £1,193 |
| Up to 55 per cent | 15 | 6 | 3 | 1 | £790 | £779 |
| *Average product fee calculation excludes products with no fee. Source: Moneyfacts.co.uk | ||||||
Darren Cook, finance expert at Moneyfacts.co.uk, said: “The mortgage market has recently boasted some of the lowest mortgage rates on record, which is fantastic news for borrowers, but our latest research into the average product fee charged in the popular two-year fixed rate market has shown that this too has fallen over the past 12 months.
“Potential first-time buyers who are likely to be looking at higher LTV mortgages will be pleased to see that two-year fixed rate products at maximum 95 per cent LTV not only have one of the lowest average fees at £914, down £46 from last year’s average, but the average interest rate for this product has fallen from 3.98 per cent 12 months ago to 3.25 per cent today.”
He added, furthermore, the number of fee-free deals at maximum 95 per cent LTV has risen from 62 to 88 products over the past year, which constitutes 72.13 per cent of all products within this sector.
