90% LTV rates getting cheaper

Ryan Bembridge

January 18, 2016

Most 90% loan-to-value mortgages have gotten cheaper over the past year, data from mortgage sourcing provider Mortgage Brain has revealed.

Typical 2-year trackers cost 4% less than three months ago and 11% less than a year ago, equating to an annual saving of £324 and £990 on a £150,000 mortgage respectively.

Mark Lofthouse, chief executive of Mortgage Brain, said: “Our latest product data analysis provides a very clear and concise picture of the true cost of a repayment mortgage and makes like for like comparisons to be made across all mainstream product types.

“There’s no doubt that the reduction in cost for the higher LTV mortgages will be welcome news to those with small deposits and it will be interesting to see how the rest of the market plays out over the next few months.”

The biggest three month reductions have taken place with 60% LTV 5-year trackers, which cost 7% less than in October 2015.

Buy-to-let wise 60% 2 and 5-year trackers are now 2% cheaper than three months ago.
And on a longer-term basis 80% LTV 2-year trackers are 10% cheaper than last year, equating to an annual saving of £972 on a £150,000 mortgage.

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