"With fresh predictions for interest rates to rise again next month, the landscape could once again be on the verge of change"
For the second successive quarter, Mortgage Brain’s product data analysis has shown a number of cost reductions for the most popular two, three and five-year residential mortgages.
The cost of a two-year fix at 60% LTV now costs 3% less than it did at the start of April, as does the lowest rate 90% LTV five-year fixed rate product (at 2.19% as of 1st July 2018).
With a current rate of 1.44%, the cost of a two-year tracker at 80% LTV is now 2% lower than it was over the same period, while a 60% LTV three and five-year fix are both 1% lower than they were in April.
Mortgage Brain’s longer term analysis also shows cost reductions being recorded for the majority of mainstream products over the past 12 months.
The cost of the 90% LTV two-year fixed rate is now 10% lower than it was at the start of July 2017.
A five year fix at 90% LTV is now 5% lower compared to this time 12 months ago, while a 4% reduction in cost has been recorded for a 90% LTV two-year tracker.
Mark Lofthouse, CEO of Mortgage Brain, commented: “With fresh predictions for interest rates to rise again next month, the landscape could once again be on the verge of change, if and when, we revert back to seeing a period of increases in the cost of residential mortgages.
“As before though, most predictions imply that the increases will be low and gradual so dramatic changes shouldn’t be seen short term. Our latest data is still showing a number of good deals for first-time buyers and those looking to remortgage but with possible changes on the horizon, the picture might look different at the end of the next quarter.”
