Cost of 90pc LTV mortgages down in UK

Photo: Images_of_Money

The cost of 90 per cent LTV mortgages has fallen in the UK at the start of 2016, which will provide an encouraging start to the new year for those hoping to buy a home.

The latest quarterly product data analysis from Mortgage Brain shows that the majority of mainstream 90 per cent LTV mortgages are down in cost compared to three months ago.

The analysis, a breakdown of all main product types in the UK mortgage market (direct and broker) for a repayment mortgage, is calculated by cost per thousad pounds and shows that the cost of a two year Tracker with a 90 per cent LTV is now 4 per cent lower than it was at the beginning of October 2015, while a two year fixed mortgage (2.94 per cent) now 11 per cent less than in January 2015.

In real terms, that equates to a saving of £324 a year for a £150k mortgage.

“There’s no doubt that the reduction in cost for the higher LTV mortgages will be welcome news to those with small deposits and it will be interesting to see how the rest of the market plays out over the next few months,” comments Mark Lofthouse, CEO of Mortgage Brain.