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.”