Barclays to cut rates on buy-to-let range

Barclays to cut rates on buy-to-let range

Barclays will cut rates rates across its buy-to-let purchase and remortgage range tomorrow, in a move designed to ensure the lender remains competitive.

As part of a wider review of its mortgage range, the lender is cutting rates on eight of its buy-to-let products in changes said to be following "recent competitor movements".

A two-year fixed rate at 75 per cent loan-to-value and £1,950 product fee on Barclays’ buy-to-let range will drop from 1.91 per cent to 1.79 per cent - the product’s premier no product fee equivalent will drop from 2.68 per cent to 2.65 per cent.

The lender will reduce its five-year fixed rate at 75 per cent loan-to-value with £1950 product fee from 2.74 per cent to 2.57 per cent.

David Hollingworth, associate director at London & Country Mortgages, said lenders were remaining competitive in their buy-to-let pricing, despite the recent Bank of England base rate rise. 

He said: "Although the base rate increased in August, the level of competition in the market continues to offer landlords the opportunity to protect against any future increases through well priced fixed rate options. 

"The base rate increase had been widely expected so has not forced rates to spike and indeed the fiercely competitive market continues to see lenders rethinking their pricing and often sharpening up the mortgage deals on offer."

Barclays will also be increasing its loan size cap on residential 95 per cent loan-to-value purchase range, with five products increasing to £400,000.

Cashback offers on Barclays' great escape mortgages, targeted at borrowers switching from another lender, will increase from £200 to £300.