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Mortgage costs drop during second quarter

According to the latest data from mortgage technology provider, Mortgage Brain, the majority of mainstream mortgages have steadily decreased over the past three months following a period of stabilisation for mortgage rates and costs.

Known as an expert in software solutions predominantly supporting lenders and networks, Mortgage Brain has garnered over 20,000 users of its products and services. Its quarterly product data analysis shows that the cost of a five-year fixed term payment with a 70% LTV is now 2% lower than it was at the beginning of April 2017. The analysis is comprised of a breakdown of all main product types in the UK mortgage market for a repayment mortgage, and is calculated by cost per ‘£000’.

As of 1st July 2017, the current going rate is 2.04%, and the 2% reduction in cost equates to an annual saving of £144 over the past quarter. Compared to this time last year, a £150k mortgage would amount to a total saving of £450.

CEO of Mortgage Brain, Mark Lofthouse, comments: “Although the reductions in costs over the past three months are relatively small, they do follow a period of stability and should be welcome news to a lot of today’s potential homebuyers or those looking to re-mortgage.”

“Our longer-term analysis of the most popular mainstream mortgages also shows a strong mix of rate and cost reductions which means that borrowers looking to take out a mortgage today can benefit from lower monthly repayments.”

Over the past three months, the cost of a 70% LTV two-year tracker and a 70% and 80% LTV three-year fixed mortgage have also come down by 2%, which offer borrowers an estimated annual saving of up to £396. Potential borrowers could benefit from this despite possible rising interest rates in the coming months.

Another slight drop has occurred for a two-year fixed (60, 70 and 80% LTV), an 80% LTV two-year tracker and a 60% LTV five year fixed – all of which are 1% lower than they were in April.

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