Barclays cuts rates further to help homebuyers

30 Jan 2013 12:01 GMT

Barclays is tomorrow (Thursday 31 January) cutting rates across its residential and buy-to-let mortgages by up to 0.50 percentage points. This follows the previous extensive rate cuts of up to 1 per cent made on 10th January and will give even more borrowers access to cheaper deals.

The reductions include a drop of 0.25 percentage points on its two year Great Escape remortgage package from 3.99 per cent to 3.74 per cent for borrowers with a 20 per cent deposit (80 per cent LTV). This will help borrowers currently on competitors’ standard variable rates (SVR) as they now stand to save even more money by remortgaging.

Other changes across the range include a highly competitive two year fixed cut from 3.49 per cent to 3.35 per cent and an attractive 2 year tracker cut by 0.50 percentage points to base +2.49 per cent. Both changes are for borrowers with a 20 per cent deposit (80 per cent LTV) and come with a £999 application fee and £499 for customers who qualify for a Barclays loyalty mortgage.

Andy Gray, Managing Director of Mortgages for Barclays, said: "This is a real boost for UK homebuyers, giving them access to cheaper mortgage deals, brought about by the combination of the low base rate and the continued benefits of the funding for lending scheme. We know that remortgaging remains an untapped opportunity for many SVR customers who are missing out on the potential savings by reviewing their mortgage. The reduction to our Great Escape remortgage package is designed to get this market moving by giving customers access to even greater savings. A borrower with a mortgage of £150,000 switching from a SVR of 4.74 per cent to this deal could now save more than £2,000* over two years.”

Alongside these rate reductions, Barclays is launching two mortgages at 65 per cent LTV for loans over £300k and available up to £1.5m. A two year offset mortgage will offer a rate of Base + 2.49 per cent and a two year fixed rate at 2.19 per cent, will be the lowest 2 year fixed rate that Barclays has ever offered. Both come with a £1,999 application fee.

For further information on Barclays mortgages visit www.barclays.co.uk/mortgages.

Notes to Editors:

Residential mortgage changes

Product

LTV (%)

Old Rate

New Rate

Application Fee

Min Loan

Max Loan

2 year fixed

65

NEW

2.19%

£1,999

£300,000

£1,500,000

2 year fixed

70

2.59%

2.54%

£999 (Loyalty £499)

£5,000

£1,000,000

2 year fixed

80

3.49%

3.35%

£999 (Loyalty £499)

£5,000

£1,000,000

3 year fixed

70

2.89%

2.75%

£499

£25,000

£1,000,000

2 year fixed Great Escape

80

3.99%

3.74%

£0

£100,000

£1,000,000

Lifetime tracker

70

Base + 3.19%

Base + 2.69%

£999

£5,000

£1,000,000

2 year tracker

80

Base + 2.99%

Base + 2.49%

£999 (Loyalty £499)

£5,000

£1,000,000

Lifetime tracker

80

Base + 3.29%

Base + 2.98%

£999

£5,000

£1,000,000

2 year offset

65

NEW

Base + 2.49%

£1,999

£300,000

£1,500,000

2 year tracker element of hybrid product (Future Fix)

80

Base + 2.99%

Base + 2.49%

£999

£5,000

£1,000,000

Buy-to-let mortgage changes

Product

LTV (%)

Old Rate

New Rate

Fee

Min Loan

Max Loan

2 yr tracker

60

NEW

Base + 2.99%

£3,999

£500,000

£1,000,000

2 yr tracker

60

NEW

Base + 2.99%

£1,999

£50,000

£500,000

2 yr tracker

75

Base + 3.49%

Base + 3.39%

£3,999

£500,000

£1,000,000

2 yr tracker

75

Base + 3.49%

Base + 3.39%

£1,999

£50,000

£500,000

2 year fixed

75

4.19%

3.89%

£3,999

£500,000

£1,000,000

2 year fixed

75

4.19%

3.89%

£1,999

£50,000

£500,000

· *Based on the monthly payments over a 2 year period for a £150,000 loan on a 25 year repayment term at a rate of 4.74% and 3.74%

· The Great Escape mortgage allows borrowers to switch their mortgage to Barclays with no application fee, free legal work, free valuation and £300 cashback. These deals are proving popular with customers suffering other lenders’ increased SVRs. In addition, all our other deals allow borrowers to remortgage using our ‘Switch and Save’ service which also helps with remortgage costs, offering a free valuation plus legal work or £200 cashback.


About Barclays

Barclays is a major global financial services provider engaged in personal banking, credit cards, corporate and investment banking and wealth and investment management with an extensive international presence in Europe, the Americas, Africa and Asia. Barclays’ purpose is to help people achieve their ambitions – in the right way.

With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs approximately 140,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.

For further information about Barclays, please visit our website www.barclays.com.