Barclays introduces new fix and lower fees

The new fixes include the introduction of a three year fixed rate at 3.99% (70% loan to value) with a lower application fee of £499. The lender is also extending the loyalty range giving Barclays customers better mortgage deals up to 85% loan to value.

Sitting alongside the 3.99% three year fixed rate at 70% LTV will be a max 80% LTV option priced at 4.68%, also with a lower application fee of £499. For loans up to 85% LTV the application fee has also been cut to £499. On the loyalty range a five year fixed rate up to 85% LTV has been introduced for 5.48%, giving existing Barclays current account customers better deals. The equivalent five year rate for customers who do not qualify is 5.69%.

Three cuts will also take place on the two year fixed rate mortgage range - at 70% LTV the rate will be cut from 3.35% to 3.28% with a £999 fee. The equivalent loyalty rate for Barclays current account customers will reduce from 3.28% to 3.18% and finally for customers looking at loans above £250,000 the rate will be cut from 3.18% to 3.08%.

Commenting, Andy Gray, head of mortgages for Barclays, said: "The cuts today are a further response to the recent decrease in swap rates and increased competition in the market.

“This should give a welcome boost to homeowners at this crucial time of year for the housing market, giving those borrowers who are concerned about when and how quickly base rate will rise the security they need by way of longer term fixed rates.

“With new rates available at 85% LTV and lower fees we believe we have a number of options for customers.”