The majority of mainstream 90% LTV mortgages are down in cost compared to three months ago, according to the latest quarterly product data analysis from Mortgage Brain.
The analysis, a breakdown of all main product types in the UK mortgage market (direct and broker) for a repayment mortgage, is calculated by cost per ‘£000’ and shows that the cost of a two-year tracker with a 90% LTV is now 4% lower than it was at the beginning of October 2015.
Similarly, a 90% LTV two-year fixed mortgage (with a rate of 2.94% based on total to pay over two years) also costs 4% less than it did three months ago and is 11% less than it was in January 2015.
The 4% cost reduction for the two-year fixed product equates to a potential £324 annualised saving on a £150,000 mortgage over the past quarter, or £990pa when compared to this time last year.
Mortgage Brain’s new data also shows cost reductions for the lowest rate three year fixed and tracker products with a 90% LTV. However, the biggest saving comes in the form of the lowest rate five year tracker (60% LTV), which now costs 7% less than it did in October 2015 and equates to an annualised saving of £630 over the past three months or £1,368pa when compared to this time last year.
By comparison, the lowest rate two year fixed and tracker mortgages with a 60% LTV have increased in cost over the past three months, with the lowest two-year fixed up 2% equating to an annualised cost increase of £180 on a £150,000 mortgage over the past three months.
Mark Lofthouse, CEO of Mortgage Brain, said: “Our latest product data analysis provides a very clear and concise picture of the true cost of a repayment mortgage and makes like for like comparisons to be made across all mainstream product types.
“There’s no doubt that the reduction in cost for the higher LTV mortgages will be welcome news to those with small deposits and it will be interesting to see how the rest of the market plays out over the next few months.”