Barclays has overhauled its existing residential mortgage range with the launch of new loans as well as reducing rates on a further 13 mortgage products.
The lender has unveiled a New Build range, available for purchases of flats and houses at 85 per cent LTV.
It includes a two-year and five year fixes at 2.09 per cent and 3.09 per cent respectively. A two-year tracker is also available, priced at 2.04 per cent. All three loans come with a £999 application fee.
In addition, Barclays has made additions to its help-to-buy mortgage range at 75 per cent LTV. New deals include a two-year fix at 1.85 per cent, a five-year fix at 2.65 per cent and a two-year tracker at 1.49 per cent – with a £999 application fee.
Meanwhile, rate reductions have been made across Barclays’ three, five and 10-year fixed and tracker rates on residential mortgages, with LTVs ranging from 60 per cent to 90 per cent.
Some of the more notable deals include a three-year fix at 90 per cent LTV, which has been reduced by 0.5 percentage points to 2.99 per cent; a five-year fix at 60 per cent LTV, discounted to 2.25 per cent LTV; and a 10-year deal at 80 per cent LTV, now available with a fixed rate of 2.99 per cent. A £999 application fee applies to all three.
Provider view
Craig Calder, director of mortgages for Barclays, said: “This package of new products and rate reductions is designed to help more hard-working first-time buyers to achieve their ambition of home ownership.
“The gap between income and house prices is at its widest in London, which is why Barclays is committed to supporting the new London Help to Buy initiative and providing other innovative ways to help even more people to afford a home, either in the capital or elsewhere in the UK.”
Adviser view
Commenting on the two-year and five-year New Build fixes, Josh Smethurst, mortgage and protection adviser at Manchester-based JonSimon Financial Advice, said: “I think they both sound competitive when you compare it to deals that are available in the market. I think that there has been more focus on helping first-time buyers onto the property ladder in recent times. I wouldn’t say that it is at the detriment of the buy-to-let sector.
He added: “I have not had many dealings with Barclays but I would say that their service is quite good. Maybe they could make some more improvements to their system.”
Charges
The application fee of the revised and new products ranges from £0 to £5,000.
Verdict
Another week has brought about yet another deal aimed at helping first-time buyers onto the ever elusive property ladder. Many industry experts have predicted that the change in stamp duty, at the detriment to the buy-to-let sector, is a boon for FTBs. A lack of supply of housing has seen an inflation in property prices as demand for continues on an upward trend – made worse by a growing population. The stamp duty hike could succeed in curbing the growth of the BTL sector and reducing the competition faced by FTBs from landlords.
Here Barclays appears to be positioning itself to take full advantage of the lucrative FTB market.
