Long term mortgages see fall in costs during first half of 2019

19 July 2019

UK, JULY 18, 2019: The majority of three and five year Fixed rate residential mortgages have come down in cost over the past six months, according to Mortgage Brain’s latest residential product data analysis.

It’s latest figures, as of 1st July 2019, show that the cost of a 60% and 70% LTV Five year Fixed rate mortgage is now 2% lower than it was in April, or 3% lower when compared to the start of the year.

Similarly, the same product with a 90% LTV now costs 2% less than it did three months ago (or 1% lower compared to January 2019), while the cost of a 60%, 70% and 90% LTV three year Fixed is now 1% lower than it was six months ago.

Mortgage Brain’s data - which provides a breakdown of all main products types in the UK mortgage market for a repayment mortgage and calculated by cost per ‘£000’ – also shows a reduction in cost of some two year residential mortgages.

A 60% LTV two year Tracker, for example, now costs 3% less than it did at the beginning of the year, while the cost of a 60% LTV two year Fixed is now 2% lower over the same period.

In monetary terms, the 3% reduction in cost over the past six months for the 60% and 70% five year Fixed equates to an annualised saving of £234 and £216 respectively on a £150k mortgage.

With a current rate of 1.34% (as of 1st July 2019), the fall in cost of the two year Tracker offers borrowers an annualised saving if £180, while the 2% reduction equates to a saving of £126 for the two year Fixed rate mortgage.

Mark Lofthouse, CEO of Mortgage Brain, comments, “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.”