The lender is targeting the 700,000 borrowers currently sitting on lenders’ standard variable rates by undercutting other lenders. Currently Halifax has an SVR of 3.5%, RBS and NatWest are charging customers 4% and Santander’s SVR is 4.24%.
Customers remortgaging onto this deal will also be eligible for “Switch & Fix” enabling them to switch to a Woolwich fixed-rate mortgage at any time without paying any early repayment charges.
Andy Gray, head of mortgages for Barclays, said: "We have built this package specifically to help the 700,000 families who feel trapped on their current lender’s SVR. We know many of the barriers that stop people re-mortgaging are simply down to cost.
“We believe the deal launched today will help stimulate the market as it cuts those costs out and provides an additional £300 cashback. With many SVRs at 3.5% or more, customers could save £60 per month or over £700 annually on a £150k repayment mortgage. If their SVR is 4% they will save over £1,200 annually.
“While base rate remains at 0.50%, anybody delaying the decision to ditch SVR is paying more than they need to. With this new offer they retain the flexibility to switch to a fixed rate at any time should their expectations about base rate change, making this one of the most competitive packages on offer today.”
Barclays closed its SVR to new customers in 2006. Since then, all customers move onto a lifetime tracker when their initial deal comes to an end.
SIGN UP FOR NEWS ALERTS
