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Analysis of mainstream mortgages shows ‘strong mix of rate and cost reductions’

Mortgage costs and rates fell during the second quarter of the year, according to the latest figures.

Mortgage Brain’s quarterly product data analysis, which provides a breakdown of all main product types in the UK mortgage market for a repayment mortgage, shows that the cost of a five-year fixed rate deal at 70% loan-to-value (LTV) is now 2% lower than it was at the start of April 2017.

With a current rate of 2.04%, 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 £150,000 mortgage.


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

A marginal decline in cost has also been recorded for a two-year fixed rate product at 60%, 70% and 80% LTV, an 80% LTV two-year tracker and a 60% LTV five-year fixed rate product, 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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