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Barclays reduces mortgage rates

15 Aug 2012 09:00 GMT

Barclays is tomorrow (Thursday 16 August) lowering some of its popular mortgage rates by up to 0.30 percentage points and introducing a five year fixed rate at 4.89 per cent for those with a smaller deposit of 15 per cent deposit or equity.

The key reductions are a drop of 0.30 percentage points on the Future Fix mortgage for borrowers with a 30 per cent deposit or equity. This gives borrowers the best of both worlds, as it offers a really good compromise – a tracker whilst rates are low now and a three year fixed rate starting in two years at today’s low prices. The tracker element is reducing to base + 2.49 per cent for two years, the three year fixed rate remains at 3.99 per cent following the cut two weeks ago. This comes with a £999 application fee.

Alongside this, the two year fixed rate mortgage for borrowers with a 40 per cent deposit is reducing from 3.09 per cent to 2.89 per cent. This rate comes with the standard £999 application fee and £499 for customers who qualify for a Barclays loyalty mortgage.

Andy Gray, Head of Mortgages at Barclays said: “This is the second time in less than a month that we have made cuts to our mortgages and is due to a highly competitive market with lenders making several reductions in the last few weeks. This is great news for borrowers who are getting access to some really low rates. We would encourage people to act now and review their mortgage to see if they stand to save money by remortgaging.

“For those with smaller deposits who need the security of fixing our new five year deal gives consumers purchasing a house or existing borrowers who need to remortgage a great deal. A borrower with a mortgage of £150,000, would pay £867 a month. For those with larger deposits, but who are uncertain what to do with the recent speculation over the future direction of base rates, Future Fix could be just the product for them. This provides the flexibility and low cost of tracking base rate now with the certainty of a fixed rate in the future.”

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


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.

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.