Cost of mortgages down despite potential rate rise

Ryan Bembridge

April 23, 2018

The cost of mortgages has fallen so far in 2018 despite the potential for a Bank base rate rise in the coming months, Mortgage Brain’s product data analysis shows.

Typical 2-year trackers at 80% and 90% loan-to-value now cost 3% less than in January, while at  70% LTV they are 2% lower and at 60% they are 1% lower.

Mark Lofthouse, chief executive of Mortgage Brain, said: “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.”

The cost of 2-year fixes at 90% LTV, as well as 3-year fixes at 60% LTV, both fell by 2%.

However 60% LTV 2-year fixes increased by 2% since the start of the year, and up 6% compared to October 2017.

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