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  • David Tarry MBA

High-LTV costs plummet 8% in 2018


Fixed rate mortgages saw a large fall in costs over 2018, with two, three and five-year fixes all reducing in price over the past 12 months, according to the latest Mortgage Brain figures.


The cost of a 90% LTV two-year fix, for example, is now 8% lower than it was in January 2018.


90% LTV three and five-year fixed rates, 60% LTV three year fixes and 80% LTV two-year fixes all cost 2% less than they did this time last year.


The fixed rate market also shows a big improvement in terms of cost compared to five years ago, with Mortgage Brain’s data showing a 24% reduction in cost for two-year fixed rates, a 21% reduction in five-year fixed rates and 13% fall for three-year fixes.


In monetary terms the 8% reduction in cost over the past 12 months equates to an annual saving of £612 on a £150,000 mortgage. Compared to five years ago, however, borrowers face a potential annual saving of £2,214 for a 90% two-year fixed rate and £2,052 and £1,152 for five and three-year products respectively.



While favourable reductions in cost have been seen over the past 12 months and longer, Mortgage Brain’s short-term analysis shows little movement with mortgage costs for the majority of mainstream products remaining static with those offered at the beginning of October 2018.


Of those reviewed, only a two-year tracker saw a movement in cost with a 60% LTV product down by 0.5%.


Mark Lofthouse, CEO of Mortgage Brain, commented: “Our latest product data analysis shows that while there’s little to get excited about in terms of rate and cost movement over the past three months, the UK mortgage market has shown some big and favourable improvements over the past few years.


“With mortgage costs down by up to 24% compared to January 2013, there are still plenty of good deals out there for first-time buyers and those looking to remortgage. 2018 saw costs and rates fluctuate, however, and I expect more of the same for 2019.”