The cost of the majority of mainstream residential mortgages has increased over the last three months, according to new data from technology firm Mortgage Brain.
Its quarterly product analysis found that in the final three months of 2017 the cost of a three-year fixed rate mortgage with a 60% loan-to-value had increased by 5%.
Similarly, a 70% loan-to-value two-year fixed rate now costs 4% more than it did at the start of October last year.
Based on a £150,000 mortgage, those equate to increases of £360 and £252 a year respectively.
More marginal increases of 2% were also pinpointed for three-year fixed rates at both 70% and 80% loan-to-value, while two-year fixed rates at 90% loan-to-value and five-year fixed rates at 70% loan-to-value saw jumps of 1%.
Despite these increases, Mortgage Brain pointed out strong year-on-year reductions in rates over the last three years. It noted that the cost of a two-year fixed rate at 90% loan-to-value is 13% lower today than in January 2015 for example.
Mark Lofthouse, chief executive officer at Mortgage Brain, said that borrowers are now starting to see the effects of November’s Bank of England base rate rise.
He continued: “So far, the increases have been marginal. However, with further rate increases predicted, we could be starting to see a shift in change in terms of mortgage cost movement compared to the past few years.”
