Short-term trackers are 30pc cheaper

Sarah Davidson

April 13, 2015

The lowest rate 90% LTV 2-year fix has also decreased by 20% from 2.49% to 1.99% in six months.

Longer-term trackers have gone the other way, as the lowest 5-year tracker has increased by 42% in six months from 1.99% to 3.19%.

Mark Lofthouse, chief executive of Mortgage Brain, said: “Despite repeated predictions for a rise in base rates in 2015 we’re yet to see any real and comparative increases in mortgage rates over the past three and six months.

“Whether this will be the case in another three months’ time remains to be seen. What is certain, however, is that the continued rate drop will be seen as further welcome news to a lot of today’s potential homebuyers or those looking to re-mortgage.”

On fixed rate products short-term 2-year deals have cheapened by 20% in six months to 90% LTV (3.39% to 2.69%) and to 60% LTV they fell by 19% (1.49% to 1.18%).

With 5-year fixes the lowest product to 60% LTV saw a 19% rate drop (2.78% to 2.24) while to 90% LTV a 15% drop (4.24% to 3.59%).

The lowest buy-to-let product rates generally over the six month period – led by a 16% reduction in 80% LTV 3-year fixes (4.99% to 4.20%).

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