Mortgage costs fall again during second quarter of 2018
17 July 2018
Cost of 90% 2yr Fixed down 8% since April 2018
2yr, 3yr and 5yr Fixed and Trackers up to 3% lower
Cost reductions equate to annualised savings of up to £576 over past three months
UK, JULY 17, 2018: The cost of mortgages has continued to fall with new data from Mortgage Brain showing further reductions in the cost of most mainstream products over the past three months.
For the second successive quarter, Mortgage Brain’s product data analysis – a breakdown of all main products types in the UK mortgage market for a repayment mortgage and calculated by cost per ‘£000’ -, has shown a number of cost reductions for the most popular two, three and five year residential mortgages.
The cost of a two year Fixed mortgage with a 90% LTV, for example, is now 8% lower than it was in April 2018, and offers borrowers an annualised saving of £576 on a £150k 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 (80% LTV) is now 2% lower than it was over the same period, while a 60% LTV three and five year Fixed are both 1% lower than they were in April.
Mortgage Brain’s longer term analysis also shows that the residential mortgage market is still in a healthy position compared to this time last year, with cost reductions being recorded for the majority of mainstream products over the past 12 months.
The cost of the 90% LTV two year Fixed, as reported on earlier for example, is now 10% lower than it was at the start of July 2017. A five year Fixed (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, comments, “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.”....
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