Barclays has cut rates on buy-to-let and residential products as part of a revamp of its product range.
Buy-to-let loans are now available up to £2m at a maximum 60 per cent loan-to-value, with a £500 cashback option on Switch and Save packages and a free legal option on remortgages at 60 per cent and 70 per cent loan-to-value (LTV)
As a result, higher-value borrowers (£500,000 to £2m) have the option of a two-year fix at 1.54 per cent and a five-year fix at 2.24 per cent, both of which are available up to 60 per cent LTV and come with a £1,950 fee.
The lender has also introduced a two-year, fee-free fix at 75 per cent LTV for residential purchase only, which has an interest rate of 1.65 per cent.
For now, the mortgage gravy train continues to roll on. I can’t see anything in the next quarter that derails that. I expect to see others saying they will cut rates again.Adrian KiddMeanwhile, rates have been cut on selected fixed and tracker products across all LTV bands up to 95 per cent LTV for purchase and remortgage.
Highlights include a two-year fix at 1.19 per cent and a five-year fix at 1.70 per cent, both of which are available up to 60 per cent LTV and come with a £999 fee.
The lender’s existing mortgage customer reward scheme has been enhanced to include rate reductions for home movers, rate switch and further advance, along with higher value reward rates for buy-to-let mortgage customers increasing their aggregate borrowing or switching rates above £1m.
Craig Calder, director of Barclays Mortgages, said: “The changes we are making will further strengthen our mortgage proposition by offering our comprehensive suite of buy-to-let and residential products to an even wider range of mortgage customers.”
Adrian Kidd, IFA at London-based Radcliffe and Newlands, said: “These rates for buy-to-let are stunning. It is just great for a client if you can meet the criteria to get that sort of rate.
“For now, the mortgage gravy train continues to roll on. I can’t see anything in the next quarter that derails that. I expect to see others saying they will cut rates again.”
He added there were signs that with inflation and consumer credit both going up, and uncertainty over Brexit remaining, the steam could eventually run out – but for the moment, the market remains strong.
simon.allin@ft.com
