Mortgage costs fall for second successive quarter

The costs of mortgages continues to fall with further reductions in the cost of most mainstream products over the last three months, data from Mortgage Brain has shown.

Mortgage Brain’s product data analysis has shown a number of costs reductions for the most popular 2, 3, and 5-year residential mortgages.

The cost of a 2-year fixed mortgage with a 60% LTV for example is now 3% lower than it was in July and offers borrowers an annualised saving of £198 on a £150,000 mortgage.

Mark Lofthouse, chief executive of Mortgage Brain, said: “With fresh predictions for interest rate rises to start as soon as November, the landscape is expected to change, if and when, we revert back to seeing a period of increases in the cost of residential mortgages.

“All predictions seem to imply that the increases will be low and gradual, however, so I don’t think we’ll see any sudden dramatic changes.

“It will be interesting to see what the trend is at the end of the next quarter.”


Written by: Houseladder