Borrowers with high LTV benefit most from lower rates

According to research conducted by mortgage sourcing company Mortgage Brain, borrowers with a 10% deposit have benefited most from the low rate mortgage deals recently introduced.

The quarterly indepth analysis of mortgage products indicates that first time buyers have the most choice of the current reductions in mortgage rates. On 1st July this year, a fixed rate two-year mortgage for a buyer with a 10% deposit costs 6% less than the same time last year. The current 2.79% rate over 24 months produces savings of £504 a year for a mortgage of £150,000.

A tracker mortgage with a 90% LTV over two years is also 6% cheaper than this time last year, at 2.54%. One of the products which saves the most is the five-year tracker mortgage at 2.55% and a 90% LTV, saving £1,206 a year, which is 13% less than July 2015.

The chief executive of the company, https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpg Lofthouse, said that there was still uncertainty in the mortgage sector due to Brexit and the cost of borrowing, despite confirmation from the Bank of England that the base interest rate will remain static at 0.5%. He said:

“A rush of rate cuts is still predicted and our month on month analysis validates this, with the cost of mortgages falling slightly compared to last month.”

He added that first time buyers and people with a low deposit are now in a great position to maximise the benefits of the current low deals. Mortgage advisers attend CeMAP training courses so that they are able to help all buyers select the best value mortgage deal.



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