The latest quarterly data analysis from Mortgage Brain shows that the cost of mortgages continued to fall over the past three months.
The report shows that there were further reductions in the cost of most mainstream products during Q3 2016.
The average rate for a three-year fixed mortgage with an LTV of 60% is now 1.89% – 5% cheaper than it was at the start of July.
The same product with a 90% LTV (at 2.94% over three years) has seen a similar reduction in cost and is now 4% lower than it was three months ago.
In financial terms, the 5% cost reduction for the 60% three-year product equates to an annual saving of £342 over the past three months.
Meanwhile, the 4% drop in cost for the 90% product equates to a potential annual saving of £306 over the past quarter, or £828 per year when compared to this time in 2015.
Mortgage Brain’s analysis also shows cost reductions for several two-year fixed and tracker mortgages.
With a rate of 1.99%, a 60% LTV two-year fixed product is now 4% cheaper than it was three months ago and offers an annual saving of £270 over the past three months.
A 90% LTV two-year fixed and a 60% LTV two-year tracker cost 3% less than they did at the start of July, offering annual respective savings of £216 and £252.
What’s more, while only witnessing a 1% drop over the past three months, the reduction in cost for a 90% LTV two-year tracker (at 2.59% over two years) equates to an annual saving of £666 when compared to October 2015.
“There’s no doubt that the last six months have been an uncertain time in the UK economy,” says Mark Lofthouse, chief executive of Mortgage Brain.
“The pre-Brexit uncertainty, which many thought would end after the vote, has merely been replaced by post-Brexit uncertainty.”
He adds: “Ironically, this means the outlook for borrowers at the moment has never been better with mortgage costs coming down yet again.”
“The post-Brexit uncertainty is likely to continue for some time though and the knowledge and advice that brokers have and can give – especially when it comes to current options for short or long term tie-ins – has never been more important.”
