Mortgage rates static in 2017: Mortgage Brain

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The cost of residential mortgages remains at record lows, with little movement seen over the past three months, according to Mortgage Brain.

The sourcing system says the cost of the lowest rate five year fixed mortgage -2.55 per cent at 90 per cent LTV – fell by just 1 per cent since January 2017.

The cost of a 60 per cent LTV two-year fixed is also just 1 per cent cheaper than it was at the start of the year.

A 90 per cent LTV two- and three-year fixed and a 60 per cent LTV five-year fixed are all just 0.2 per cent cheaper than they were three months ago.

By comparison, rates on 60 per cent LTV two-, three- and five-year trackers have all been static since January.

Mortgage Brain says a slight increase in cost occurred for a 60 per cent LTV three-year fixed rate loan,which rose 1 per cent to 1.79 per cent over the course of 2017.

Despite the short-term lack of movement on rates, Mortgage Brain says there have been year-on-year drops in the cost of mainstream mortgages.

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

The cost of a three-year fixed with a 90 per cent LTV is now 4 per cent lower than it was 12 months ago.

The cost of a 60 per cent LTV three-year fixed and a 60 per cent LTV two-year fixed are both around 4 per cent lower than this time last year.

 Mortgage Brain chief executive Mark Lofthouse says: “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.”