Barclays is lowering the majority of its two year fixed rates mortgages by up to 0.20 percentage points, reducing the NewBuy rate and introducing two new deals to the range. The changes include a two year Great Escape remortgage package cut from 3.89 per cent to 3.74 per cent for loans at 70 per cent loan to value (LTV) which will help borrowers sitting on competitors’ standard variable rates (SVR) who will see their monthly payments increased from 1 June to save money.
Other changes across the range are a reduction of 20 percentage points on the two year fixed at 60 per cent LTV reduced from 3.49 per cent to 3.29 per cent, and from 3.59 per cent to 3.39 per cent at 70 per cent LTV. At 80 per cent LTV the rate will fall from 3.79 per cent to 3.69 per cent.
In addition the NewBuy rate and application fee has been cut to further support first time buyers or home movers purchasing a new build house or flat with participating builders. The three year fixed will fall from 6.09 per cent to 5.89 per cent with a £500 reduction in the application fee to £499.
Alongside these rate reductions, Barclays is adding two mortgages to its range at 65 per cent LTV for loans over £500k and available up to £2m with a two year offset mortgage at base + 2.49 per cent and a two year fixed rate at 2.99 per cent, both come with a £1,999 application fee.
Andy Gray, head of mortgages at Barclays said: “We are starting to see a trend of more people looking to remortgage in light of recent increases to more than a million borrowers sitting on competitors SVRs Cutting rates today is about giving people the right mortgage at the right time to help secure their monthly payments. A borrower with a mortgage of £150,000, switching from a SVR of 4.79 per cent to the Great Escape fixed at 3.74 per cent could save more than £2,000 over two years if base rate continues to stay at 0.50 per cent.”
The Great Escape mortgage allows borrowers to switch their mortgage to Barclays with no application fee, free legal work, free valuation and £300 cashback. These deals are proving popular with customers suffering other lenders’ increased SVR. In addition, all our other deals allow borrowers to remortgage using our ‘Switch and Save’ service which also helps with remortgage costs, offering a free valuation plus legal work or £200 cashback.
