Has stability arrived in the mortgage market?

Has stability arrived in the mortgage market?
Our latest product data analysis shows that there’s little to get excited about in terms of rate and cost movement over the past three months

Recent analysis from Mortgage Brain has shown that the cost of most mainstream mortgages continues to show signs of stabilisation due to little movement seen in the market over the past three months.

According to the report, the cost of the lowest rate five year fixed mortgage (2.55%) with a 90% LTV, for example, fell by just 1% since the start of January 2017. The cost of a 60% LTV two year fixed is also just 1% cheaper than it was at the start of the year, while a 90% LTV two and three year fixed and a 60% LTV five year fixed are all just 0.2% cheaper than they were three months ago.

By comparison, a 60% LTV two, three and five year tracker have all remained inactive with mortgage costs remaining static with those offered at the beginning of the year.

A slight increase in cost has been recorded for a 60% LTV three year fixed mortgage, which, with a current rate of 1.79%, is now 1% higher than it was at the start of January 2017.


Despite the short term analysis showing little movement, Mortgage Brain’s latest product data analysis continues to show year on year reductions in the cost of mainstream mortgages.

The lowest rate 90% LTV five year fixed now costs 5% less than it did this time last year, for example, while its 60% LTV counterpart costs 4% less than it did in April 2016.

Similarly, the cost of a three year fixed with a 90% LTV is now 4% lower than it was 12 months ago while the cost of a 60% LTV three year fixed and a 60% LTV two year fixed are both around 4% lower than this time last year.

Mark Lofthouse, CEO of Mortgage Brain, comments: “Our latest product data analysis shows that there’s little to get excited about in terms of rate and cost movement over the past three months. Following the long period of record lows, however, our short terms analysis can be seen as another sign that were moving towards a period of cost and rate stability, or even potential rises.”

Join our mailing list:

Leave a comment



Latest Comments

Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

view article
RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

view article
sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

view article
Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

view article
Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

view article
Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

view article
Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

view article
Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

view article
brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

view article
IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

view article
IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

view article
cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

view article

Related stories

More articles from Finance

Property Finance Roadshow 2017

4th - 12th October

4 days
6 specialists
4 locations
Free to attend

Click here to register now