After a long period of stabilisation mortgage costs are starting to decrease, according to market analysts Mortgage Brain.
Over the three month period to July the cost of a five-year fixed-rate mortgage with a 70 per cent loan-to-value has dropped by 2 per cent.
Mortgage Brain’s quarterly product data analysis also reveals the cost of a 70 per cent LTV two-year fixed rate mortgage has fallen by the same proportion, gifting borrowers potential annual savings of up to early £400.
Mortgage Brain recorded a slight drop in two-year fixed deals, at 60 per cent, 70 per cent and 80 per cent LTVs, and on 60 per cent five-year fixed-rate mortgages, all slipping by 1 per cent.
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 remortgage.
“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.”
Liz Syms, chief executive of Connect Mortgages, said: “It’s a very competitive market right now. There are lots of lenders battling for competition and the result is being filtered down to the customer base.
“There is an underlying sense of confidence in the housing sector, helped by low interest rates and no real weight behind the argument that they will rise anytime soon.”
