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Mortgage costs fall in first quarter of 2018, despite base rate worry

A new survey suggests that despite many lenders increasing their rates, most mainstream mortgages are down compared to the start of the year.

For example, the cost of a two year tracker - both 80 and 90 per cent loan to value - now costs three per cent less than it did at the start of January. 

The same product with a 70 per cent LTV is now two per cent lower and its 60 per cent LTV counterpart is now one per cent lower over the same period.


The analysis by Mortgage Brain looks at all main product types in the UK mortgage market for a repayment mortgage.

There are a few products that have bucked the trend, mostly around one per cent increases for a 70, 80 and 90 per cent LTV five year fixed rate mortgage.

“Having seen month on month increases during the last quarter of 2017, it’s all change once again with the cost of most mainstream mortgages falling over the past three months” explains Mark Lofthouse, chief executive of Mortgage Brain.

“We are seeing a number of lenders starting to increase their rates ahead of the likely base rate rise next month, however, so it could well be back to reporting on a wave of cost increases at the end of June.”


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