New research published by Moneyfacts reveals that the 10 top mortgage lenders in the UK have further reduced the costs of the loans they offer since the beginning of 2020.

The data shows that several major lenders have cut prices for their five-year and two-year fixed rate mortgages at a loan-to-value of 75% since the year began. According to the research, these reductions have not primarily been made in the headline rates area, but rather by adjusting the fees for these mortgage products.

This is being done in an attempt to stay ahead of the competition in a cut-throat sector, but it has come at a time when lenders are already coping with other pressures on their profit margins. At Barclays, the cost of a two-year fixed rate mortgage at 75% loan-to-value has dropped to 1.96% now compared with 2.08% at the start of 2020.

Nor is this an isolated example, as a five-year fixed rate deal from the Coventry Building Society will now have a true cost of 1.78%, whereas it was 1.92% back in January.

Speaking to Mortgage Solutions, Eleanor Williams from Moneyfacts said:

“It is encouraging to see reductions from so many providers, whether these shifts are being applied to the interest rates themselves or to the overall package offered.”

With so much competition and reduced mortgage costs, the ability of a professional who has completed a CeMAP mortgage advisor course to spot the smartest deals for customers is more necessary than ever.