The majority of three and 5-year fixed rate residential mortgages have seen a reduction in cost over the past six months, the latest residential product data analysis from Mortgage Brain has revealed.
As of 1 July 2019 the cost of a 60% and 70% LTV 5-year fixed rate mortgage is now 2% lower than it was in April, or 3% lower when compared to the start of the year.
The same product with a 90% LTV now costs 2% less than it did three months ago (or 1% lower compared to January 2019), while the cost of a 60%, 70% and 90% LTV 3-year fixed is now 1% lower than it was six months ago.
Mark Lofthouse, CEO of Mortgage Brain, said: “Our latest residential mortgage data continues to show a number of good deals for first-time buyers and those looking to remortgage, especially for those looking for a longer-term deal.
“And with recent predictions that interest rates will remain on hold throughout most of 2019, the picture could well be the same for the next few months.”
The data – which provides a breakdown of all main products types in the UK mortgage market for a repayment mortgage and calculated by cost per ‘£000’ – also shows a reduction in cost of some 2-year residential mortgages.
A 60% LTV 2-year tracker, for example, now costs 3% less than it did at the beginning of the year, while the cost of a 60% LTV 2-year fixed is now 2% lower over the same period.
In monetary terms, the 3% reduction in cost over the past six months for the 60% and 70% 5-year fixed equates to an annualised saving of £234 and £216 respectively on a £150k mortgage.
With a current rate of 1.34% (as of 1 July 2019), the fall in cost of the 2-year tracker offers borrowers an annualised saving if £180, while the 2% reduction equates to a saving of £126 for the 2-year fixed rate mortgage.