Barclays is tomorrow (8 July) introducing new rates across its range, from low loan-to-value deals to 10-year fixes.
Highlights include a two-year fixed rate at 1.35 per cent, a five-year fix at 2.14 per cent, and a 10-year fix at 2.79 per cent, all at 60 per cent LTV.
Application fees of £999 apply across all three and the two and five-year deals are for remortgage only.
The lender’s director of mortgages Craig Calder said: “These changes to our fixed range of mortgage products demonstrates that Barclays, as a responsible lender, is continuing to offer home buyers and movers with even more choice, all supported by robust lending criteria.”
Product | LTV (%) | Old Rate | New Rate | Application Fee | Min Loan | Max Loan |
2 Year Fixed Rates | ||||||
2 year fixed Remortgage only | 60 | 1.43% | 1.35% | £999 | £5,000 | £1,000,000 |
3 Year Fixed Rates | ||||||
3 year fixed | 60 | 1.99% | 1.90% | £999 | £5,000 | £1,000,000 |
3 year fixed | 75 | 2.15% | 2.04% | £999 | £5,000 | £1,000,000 |
3 year fixed | 80 | 2.29% | 2.09% | £999 | £5,000 | £1,000,000 |
5 Year Fixed Rates | ||||||
5 year fixed | 80 | 2.63% | 2.58% | £999 | £5,000 | £1,000,000 |
5 year fixed Purchase only | 60 | NEW | 2.19% | £1,499 | £5,000 | £1,000,000 |
5 year fixed Premier Remortgage Only | 60 | NEW | 2.09% | £999 | £5,000 | £1,500,000 |
5 year fixed Remortgage Only | 60 | NEW | 2.14% | £999 | £5,000 | £1,000,000 |
10 Year Fixed Rates | ||||||
10 year fixed | 60 | NEW | 2.79% | £999 | £5,000 | £1,000,000 |
Rate Switch Range - for existing Barclays Mortgage customers | ||||||
2 year fixed | 60 | 1.43% | 1.35% | £999 | £5,000 | £1,000,000 |
3 year fixed | 60 | 2.39% | 2.19% | £0 | £5,000 | £1,000,000 |
5 year fixed | 60 | 2.19% | 2.09% | £999 | £5,000 | £1,500,000 |
5 year fixed | 70 | 2.79% | 2.59% | £0 | £5,000 | £1,000,000 |
7 year fixed | 75 | 2.89% | 2.59% | £999 | £5,000 | £1,000,000 |
7 year fixed | 75 | 3.29% | 2.89% | £0 | £5,000 | £1,000,000 |
10 year fixed | 80 | 3.49% | 3.19% | £0 | £5,000 | £1,000,000 |
Barclays joined three other lenders this week introducing new rates for 10-year fixed rates, with Coventry Building Society (2.39 per cent at 50 per cent LTV) and West Bromwich Building Society (2.79 per cent for 65 per cent LTV) both launching deals on Friday.
Meanwhile, HSBC’s offer this morning was also priced at 2.79 per cent for purchases at up to 70 per cent LTV.
Martin Stewart, director at brokers London Money, said he was wary of such long duration deals.
He said: “You would need to be very confident that you require this money for the full 10 years. I look at some clients situations from three years ago and they are totally different today.
“You could argue those in later life might see that a 10-year fixed rate as the final move for them from a borrowing point of view. I counter that with an anecdote of a couple in their mid 50s who were mortgage free in 2014 and now have a debt of £1.2m; never say never.
“My own philosophy is that people should keep their powder dry and keep their situation as flexible as possible.”
peter.walker@ft.com
