Mortgage borrowers with smaller deposits are seeing rate cuts of up to 0.88%, according to latest research from the Nottingham Building Society.
Research from The Nottingham shows the biggest cuts across best-buy deals in the past four-and-a-half months have been for borrowers looking for 90% loan-to-value (LTV) deals.
The rate cuts have come despite a fall in the number of 90% LTV deals – in November there were 455 compared to 427 today. However the number of 95% LTV deals has grown from 126 to 178, according to The Nottingham.
Its research reveals that average best-buy fixed and variable mortgage rates fell by up to 0.88% between 11th November 2014 and 30th March 2015. On a mortgage of £150,000 this would save around £1,300 a year in interest payments.
The research looked at the average rate for best buys for both fixed and variable rate mortgages across a variety of loan-to-values (LTVs) and all recorded falls ranging from 0.18% to 0.88%^.
Nottingham Building Society research with mortgage brokers reveals that 23% expect mortgage rates to rise over the next six months but 16% believe rates will continue to fall.
Ian Gibbons, Nottingham Mortgage Services Senior Mortgage Broking Manager said: “There is considerable competition in the mortgage market currently and this is driving cuts in rates across the board and particularly at higher LTVs. Competition is likely to remain intense and those searching the market should be able to source a competitive deal to meet their needs.”