Cost of a mortgage dropping


July 20, 2017

Following a period of stabilisation for mortgage costs and rates the majority of mainstream mortgages have come down in cost over the past three months, the latest data from Mortgage Brain has revealed.

Mortgage Brain’s quarterly product data analysis  shows that the cost of a 5-year fixed with a 70% LTV is now 2% lower than it was at the beginning of April 2017.

With a current rate of 2.04% (as of 1st July 2017), the 2% reduction in cost equates to an annualised saving of £144 over the past three months, or £450 when compared to this time last year on a £150k mortgage.

The cost of a 70% LTV 2-year tracker and a 70% and 80% LTV 3-year fixed mortgage have also come down by 2% over the past quarter and offer borrowers potential annual savings of up to £396.

A slight drop in cost has also been recorded for a 2-year fixed (60%, 70% and 80% LTV), an 80% LTV 2-year tracker and a 60% LTV 5-year fixed, which are all now 1% lower than they were in April.

Mark Lofthouse, CEO of Mortgage Brain, said: “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.”

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