The cost of borrowing at 90 per cent loan-to-value has jumped by 28 per cent over the past year, analysis by Mortgage Brain has revealed.

Borrowers with a 10 per cent deposit who wish to fix for two years will now pay an average of £5.22 per £1,000, compared to £4.06 in November 2019.

For a £200,000 mortgage, the price increase equates to an extra £2,784 a year.

The cost of a three-year fixed rate mortgage at 90 per cent LTV has risen by 17.2 per cent over the same period, which means an increase from £4.31 to £5.05 per £1,000 borrowed.

On a £200,000 mortgage that means an extra £1,776 a year in repayments.

Five-year fixed rates mortgages at 90 per cent LTV have seen a more modest rise of 9.7 per cent, from £4.35 to £4.77 per £1,000 borrowed, taking annual bills on a £200,000 loan up by £1,008.

Borrowers at lower LTVs have also seen prices rise to a lesser extent. 

The cost of a 60 per cent LTV two-year fixed rate has climbed by 2.96 per cent from £3.71 to £3.82 per £1,000 borrowed.

The cost of a three-year fixed rate at the same LTV band has risen from £3.98 to £4.24 per £1,000 borrowed, an increase of 6.53 per cent over the year. 

But five-year fixed rates at 60 per cent, 70 per cent and 80 per cent LTV have all dropped over the last 12 months, by 4.95 per cent, 3.42 per cent and 3.80 per cent respectively.

Mortgage Brain sales and marketing director Neil Wyatt says: “Lenders have understandably taken a more cautious approach to their product ranges due to the operational and potential economic impacts that have been experienced as a result of the Covid-19 pandemic, and that’s been seen most clearly with the products on offer to borrowers with a deposit of just 10 per cent. 

“Not only has there been a significant reduction in the availability of these products, but the costs of the products that are on the market have increased to a striking extent.”