Tracker mortgages at 90 per cent LTV (loan to value) were the best performing products so far this year, with a 31 per cent rate drop from 3.59 per cent in January to 2.49 per cent at April 1st.
The figures were revealed as part of Mortgage Brain’s quarterly product data analysis.
The interest rate for the same product with a 60 per cent LTV ratio also dropped during the past three months – down 12 per cent from 1.69 per cent to 1.49 per cent.
By contrast, however, the lowest interest rate for a five year tracker with a 60 per cent LTV has increased by 50 per cent since January 2014 (up from 1.99 per cent to 2.99 per cent), and the lowest rate 90 per cent tracker increased (by 3 per cent) from 3.54 per cent to 3.65 per cent.
Fixed rate products also fluctuated during the first quarter of 2014. A six per cent rate drop was seen for the lowest rate five year fixed with a 60 per cent LTV, whereas the rate for its 90 per cent counterpart remained static at 4.29 per cent over the three months from January 2014.
This trend was reversed for fixed rate products with a two year term, though, with the lowest rate 60 per cent LTV product holding a rate of 1.48 per cent since January 2014, and the lowest rate 90 per cent dropping (1 per cent) from 3.49 per cent to 3.45 per cent.
Mark Lofthouse, CEO of Mortgage Brain, comments, “While interest rates have fluctuated over the past three months – bringing a mix of good news and bad news for borrowers – the longer term analysis is still very favourable with the majority of products benefiting from significant rate drops over the past 12 months.
“The lowest rate two year tracker with a 90 per cent LTV, for example, is now 33 per cent lower than this time last year, which equates to an annual reduction of just over £1,800 on a £150k mortgage. Comparably, the lowest rate three year Tracker with a 90 per cent LTV has dropped 25 per cent since April 2013 equating to a potential annual reduction of £1,500.”
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