90% deals see large rate drops

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Mortgage Brain’s latest quarterly product data analysis shows a further widespread drop in mortgage rates for all main product types.

The latest figures – as of 1 July 2015 – show that following an 11% rate reduction over the past three months, the lowest rate two-year fixed product with a 60% LTV now stands at 1.05% – down from 1.18% in April 2015.

Mortgage Brain’s data also shows that the same product with a 90% LTV (which now stands at 2.48%) saw a rate reduction of 8% – down from 2.69% in April.

Three-year fixed rate products saw similar reductions over the past quarter with the lowest rate 80% LTV product down 35% from 2.29% to 1.49% and the lowest rate 60% LTV product down (12%) from 1.78% in April to 1.57% as of 1 July.

The largest rate drop for trackers was seen in the lowest rate five-year product with an 80% LTV, which fell 29% – down from 3.65% to 2.59%.

The lowest rate two-year tracker with a 60% LTV, despite dropping by just 1% over the past three months, now offers the best overall rate available at 0.98%.

Mark Lofthouse, CEO of Mortgage Brain, said: “Our latest data is showing some substantial rate drops over the past three months, with many products now offering extremely low interest rates.

“Historically, products with a 90% LTV ratio led the field in terms of rate drops; however, our current data is showing that products with a 60% LTV are starting to take the charge with big rate reductions across the board over the past three months.”

Mortgage Brain said the buy-to-let market continues to show little movement in terms of rate adjustments over the past three months; however, rate rises still haven’t been seen here either.

Its latest buy-to-let data shows that the lowest rate five-year fixed products with a 60%, 70% and 80% LTV are all holding steady with rates static with this time three months ago (3.29%, 3.69% and 4.45% respectively).

A 21% rate drop was seen for the lowest rate three-year tracker with a 60% LTV, which is down from 3.25% to 2.56%, and the lowest rate five-year tracker with a 60% LTV dropped for the first time in over 12 months (down 14%) to now stand at 3.39% – down from 3.95%.

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