Costs of higher LTV deals on the rise

Published on

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.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Expat buy-to-let rates rise sharply for lower-LTV borrowers

British expatriate landlords with larger deposits are facing higher mortgage rates than borrowers with...

Commonhold reform faces practical challenges over finance and building management

The introduction of commonhold as an alternative to leasehold will require significant preparation across...

Family BS reduces fixed mortgage pricing for landlords and homeowners

Family Building Society has cut rates across its two-year fixed mortgage range by up...

Sprive records ninefold rise in shoppers as mortgage cashback spending reaches £185m

Mortgage cashback app Sprive has reported a sharp increase in customer activity, with shoppers...

Mortgage deals last just 15 days as volatility hits record high

Mortgage products are lasting just 15 days on average this year as lenders repeatedly...

Latest publication

Other news

Expat buy-to-let rates rise sharply for lower-LTV borrowers

British expatriate landlords with larger deposits are facing higher mortgage rates than borrowers with...

Commonhold reform faces practical challenges over finance and building management

The introduction of commonhold as an alternative to leasehold will require significant preparation across...

Buy-to-let and the next generation of landlords

There has been plenty of discussion recently about the future of buy-to-let, whether landlords...