With greater numbers of first time buyers, and those looking to re-mortgage their home, mortgage lenders have been driven to cut their rates in an increasingly competitive market. Analysis conducted by Mortgage Brain has shown that mortgage rates have fallen for the second year in a row. In the last three months alone, some mortgages have fallen by up to 8%. In particular, residential mortgages in higher loan to value (LTV) brackets with fixed terms between two and five years have seen the largest reduction in costs. For example, over the last quarter, since April 2018, a 90% LTV 2-year fixed rate mortgage has become 8% cheaper. According to calculations done by Mortgage Brain, this would mean that if you have a £150,000 mortgage, you’ll be saving £576 per year on it at the new rates. Other savings include:
60% LTV 2-year fixed rate mortgages are down by 3% since April 1st
90% LTV 5-year fixed rate mortgages are down by 3% since April 1st (with a 2.19% reduction since the beginning of this month)
80% LTV 2-year tracker mortgages are down 2% since April 1st
3- and 5-year fixed 60% LTV mortgages are both down 1% since April 1st
90% LTV 2-year fixed rate mortgages are in total 10% lower since July 2017
90% LTV 5-year fixed rate mortgages are now 5% lower since July 2017
90% LTV 2-year tracker mortgages have seen a 4% reduction in cost since July 2017
