Barclays cuts rates

Its existing 90% LTV 2 and 5-year fixed rates will be reduced by 0.20% to offer rates of 3.99% and 4.79% respectively.

To improve the options for customers looking for between 80 – 85% LTV Barclays is also launching an 85% LTV 5-year fixed at 3.99%.

It is also reducing the rate on its 80% LTV further advance lifetime tracker by 0.50% and the 80% LTV large loan Lifetime Tracker by 0.76% meaning both products now offer a rate of 3.99%.

Andy Gray, managing director of mortgages at Barclays, said: “We are delighted to announce a number of rate cuts that will benefit first time buyers and those with smaller deposits looking to get on or move up the property ladder. The addition of a new five year fixed rate at 85% will give customers the option of longer term stability and protecting them from future base rate rises.

“We believe that by simplifying our range and aligning the follow-on rates for all our mortgage products with a competitive rate of 3.99 per cent (BBBR+3.49 per cent), Barclays can offer much better value for customers over the long term when considering most lenders move customers onto an SVR (Standard Variable rate) with an average rate of 4.4 per cent (CML July 2014).”

Following new guidelines from the Financial Policy Committee on affordability testing, with effect from Tuesday 19th August, the affordability rate on residential applications will be 6.99%. The affordability rate for Family Springboard and Help to Buy: mortgage guarantee applications will remain at 7.24%.