Barclays cuts fixed rate mortgages
Tomorrow (29 May) Barclays is lowering the majority of its two-year fixed rates mortgages by up to 0.20 percentage points, reducing the NewBuy rate and introducing two new deals to the range.
The changes include a two-year Great Escape remortgage package, cut from 3.89 per cent to 3.74 per cent for loans at 70 per cent loan-to-value (LTV), which will help borrowers sitting on competitors’ standard variable rates (SVR) who will see their monthly payments increased from 1 June to save money.
Other changes across the range are a reduction of 20 percentage points on the two-year fixed rate at 60 per cent LTV reduced from 3.49 per cent to 3.29 per cent, and from 3.59 per cent to 3.39 per cent at 70 per cent LTV.
At 80 per cent LTV the rate will fall from 3.79 per cent to 3.69 per cent.
In addition the NewBuy three-year fixed rate will fall from 6.09 per cent to 5.89 per cent with a £500 reduction in the application fee to £499.
Alongside these rate reductions, Barclays is adding two mortgages to its range at 65 per cent LTV for loans of more than £500,000 and available up to £2m with a two-year offset mortgage at base rate plus 2.49 per cent and a two-year fixed rate at 2.99 per cent.
Both deals come with a £1,999 application fee.
Andy Gray, head of mortgages at Barclays, said: “We are starting to see a trend of more people looking to remortgage in light of recent increases to more than a million borrowers sitting on competitors SVRs.
“Cutting rates today is about giving people the right mortgage at the right time to help secure their monthly payments.
“A borrower with a mortgage of £150,000, switching from a SVR of 4.79 per cent to the Great Escape fixed at 3.74 per cent could save more than £2,000 over two years if base rate continues to stay at 0.50 per cent.”
The Great Escape mortgage allows borrowers to switch their mortgage to Barclays with no application fee, free legal work, free valuation and £300 cashback.