Mortgage Brain’s latest product data analysis shows the cost of most high LTV (80% and 90%) mainstream mortgage products has risen over the past three months.
The cost of a 90% LTV two year fixed, for example, is now 5% higher than it was at the beginning of January 2019. With a current rate of 2.36% (as of 1st April 2019), and appealing to first time buyers, the cost rise equates to an annualised increase of £342 on a £150k mortgage.
A 90% LTV two year tracker and a 90% five year fixed now cost 1% more than they did at the beginning of the year, while the cost of an 80% LTV three year fixed, two year fixed and two year tracker, has increased by up to 0.5% over the same period.
Borrowers with a bigger deposit, or those looking to remortgage, however, can take advantage of a number of small reductions with Mortgage Brain’s data showing a 1% fall in the cost of a 60% LTV two and five year fixed rate mortgage compared to January 2019.
Mortgage Brain’s longer-term analysis also shows a number of slight cost reductions for both high and low LTV products when compared to this time last year.
With a current rate of 2.06%, a 60% LTV two year fixed mortgage is now 3% cheaper than it was in April 2018, while a 90% two and five year fixed are both 2% cheaper than they were 12 months ago.
Based on a £150k mortgage, borrowers looking to take out one of these mortgages could now benefit from an annual saving of up to £198.
Mark Lofthouse, CEO of Mortgage Brain, said: “While those with small deposits are faced with a number of cost increases compared to the beginning of the year, our longer term analysis shows that the majority of borrowers can still benefit from a number of savings compared to this time last year.”