Rates on mainstream and buy-to-let mortgages have fallen by as much as 10% over the past three months.
This should spell further good news for borrowers as rates continue to hit new lows with no base rate increase in sight.
The cheapest five-year tracker to 90% LTV has fallen 10% since the start of the year to charge just 2.65% at 1 April.
This equates to a potential £972 annualised saving on a £150,000 mortgage, compared to this time last year.
The average two-year fixed rate buy-to-let mortgage at 80% LTV has fallen 5% since January, according to Mortgage Brain’s latest quarterly product data analysis.
Other mortgage types have dropped by smaller amounts, with the cheapest five-year fixed rates at 60% and 90% LTV, and cheapest two-year tracker at 60% LTV, now 1% cheaper than three months ago.
The lowest rate five-year tracker to 60% LTV now charges 1.99%, the same as three months ago but 12% less than one year ago. This equates to potential £1,098 annualised saving on a £150,000 mortgage.
Mark Lofthouse, chief executive of Mortgage Brain, said this is further good news for potential homebuyers or remortgage customers, especially with no base rate hike likely before 2017 or 2018 at the earliest.
“Our analysis of the most popular mainstream and buy-to-let mortgages shows considerable rate and cost reductions which means that borrowers looking to take out a mortgage today can benefit from lower monthly repayments.”