High street lender is reducing fixed and tracker rates, with cuts of up to 0.37%
Barclays is implementing a broad set of mortgage rate reductions effective tomorrow, 19 June, spanning two-, three- and five-year fixed products as well as tracker rates across its residential range.
Among the new products being introduced is a 5.80% two-year offset tracker with a £1,999 fee at 75% LTV for loans between £2 million and £5 million, and a 3.99% Premier two-year tracker with a £999 fee at 60% LTV.
On the fixed-rate side, the bank's two-year fixes at 60% LTV will fall from 4.39% to 4.30% (£899 fee) and from 4.64% to 4.51% (no fee). At 75% LTV, the two-year fix drops from 4.74% to 4.50% with a £899 fee, while the fee-free equivalent falls from 4.93% to 4.69%.
Five-year fixed rates see some of the sharpest reductions. The 60% LTV product with a £899 fee falls from 4.76% to 4.43%, a reduction of 0.33 percentage points, while the fee-free version at the same tier drops from 4.86% to 4.52%. At 90% LTV, the Premier five-year fix with a £899 fee decreases from 4.75% to 4.58%, and the fee-free equivalent falls from 5.15% to 4.85%.
Higher LTV borrowers also benefit from the reductions. The 95% LTV five-year fix (no fee) drops from 5.29% to 5.09%, and the Springboard 95% LTV product falls from 5.32% to 4.99%. The Springboard 100% LTV rate decreases from 5.54% to 5.19%.
Green Home products are also included in the changes. The two-year fix at 60% LTV (no fee) falls from 4.54% to 4.41%, and the five-year fix at the same tier with a £899 fee drops from 4.66% to 4.33%.
Three-year fixed rates are also being reduced, with the 75% LTV product falling from 5.05% to 4.68%, the 90% LTV product from 5.25% to 5.05%, and the 95% LTV product from 5.42% to 5.32%.
Barclays is simultaneously withdrawing its 3.96% two-year tracker best-buy product.
"Barclays is lowering the price of its mortgage rates so they are much closer to Nationwide's best buy deals," said Aaron Strutt (pictured right), product director at Trinity Financial. "The bank will have a 4.30% two-year fix (down from 4.39%) and a decent 4.43% five-year fix. Barclays has lowered its best five-year fix by 0.33% (it was 4.76%) which means there is a decent saving for anyone planning to take this rate soon. The bank has also reduced many of the rates for those with smaller deposits.
"It is worth remembering borrowers with a mortgage offer through Barclays can swap to the cheap rate before they exchange contracts, providing there is enough time to get the paperwork updated.
"Barclays is also pulling its best buy 3.96% two-year tracker rate which no doubt has been incredibly popular. The move comes just before the base rate is set to stay on hold for at least another month. Halifax still has its 3.96% two-year tracker, with a £1499 fee and 40% deposit required."
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