The cost of most mainstream mortgages were down when compared to the start of last year, according to the latest quarterly product data analysis by Mortgage Brain.
These findings come despite the current rise of lenders increasing mortgage rates ahead of a potential base rate rise.
A two-year tracker (80% and 90% loan-to-value) now costs 3% less than it did in January 2018. The same product with a 70% LTV is now 2% lower, while it’s 1% at 60% over the same period.
The 1.59% and 1.97% rates (from April 1) with the 3% reduction in cost for the 80% and 90% two-year tracker amounts to a yearly £234 saving, while the 2% cost reduction for the 70% LTV product equates to an annualised saving of £180.
Mortgage Brain’s data also revealed a 2% reduction in the cost of a 90% LTV two-year fixed product and a 60% LTV three-year fixed. The analysis also showed a 1% increase for a 70. 80 and 90% LTV five-year fixed rate mortgage.
Meanwhile, a 60% LTV two-year fixed saw a 2% rise in cost compared to January 2017, and a 6% increase in cost in comparison to this time in October last year. This equals a £144 annualised increase over three months (or £378 over six months) with a rate of 1.83%.
Mark Lofthouse, chief executive officer of Mortgage Brain, commented: “Having seen month on month increases during the last quarter of 2017, it’s all change once again with the cost of most mainstream mortgages falling over the past three months.”
“We are seeing a number of lenders starting to increase their rates ahead of the likely base rate rise next month, however, so it could well be back to reporting on a wave of cost increases at the end of June.”