Barclays is announcing a fresh range of cuts of two- and five-year fixed mortgage rates after starting the New Year with a record-low offer.
The cuts (to be applied from 13 January, Tuesday) are on products for first-time buyers and the Help-To-Buy 2 mortgage guarantee scheme, with the most significant reductions made in the Help-To-Buy 2 offers.
Particularly borrowers with smaller deposits stand to benefit from the new offers, Barclays says.
Among the Help-to-Buy 2 offers is a market leading 4.49 per cent two-year fixed rate at 95 per cent LTV, the bank notes.
“We kicked off 2015 with the launch the UK’s lowest ever ten year fixed rate at 2.99 per cent. Building upon this, our fourteenth straight rate reduction provides an opportunity to demonstrate our commitment to giving first time buyers and those with smaller deposits access to market leading mortgage rates,” Andy Gray, managing director of mortgages for Barclays, comments.
What Barclays is changing:
|
Product |
LTV (%) |
Old Rate |
New Rate |
Application Fee |
Min Loan |
Max Loan |
| Fixed Rates | ||||||
|
2 year fixed |
75 |
1.94% |
1.88% |
£999 |
£5,000 |
£1,000,000 |
|
2 year fixed |
80 |
NEW |
2.29% |
£0 |
£5,000 |
£150,000 |
|
2 year fixed |
80 |
2.33% |
2.19% |
£999 |
£5,000 |
£1,000,000 |
|
2 year fixed |
85 |
2.75% |
2.63% |
£999 |
£5,000 |
£500,000 |
|
2 year fixed |
90 |
3.68% |
3.39% |
£999 |
£5,000 |
£500,000 |
|
2 year fixed |
90 |
NEW |
3.89% |
£0 |
£5,000 |
£500,000 |
|
5 year fixed |
80 |
NEW |
3.25% |
£0 |
£5,000 |
£150,000 |
|
5 year fixed |
85 |
3.85% |
3.75% |
£999 |
£5,000 |
£1,000,000 |
| Loyalty Fixed Rates | ||||||
|
2 year fixed |
80 |
2.33% |
2.19% |
£499 |
£5,000 |
£1,000,000 |
|
2 year fixed |
85 |
2.75% |
2.63% |
£499 |
£5,000 |
£1,000,000 |
|
2 year fixed |
90 |
3.68% |
3.39% |
£499 |
£5,000 |
£500,000 |
| Great Escape | ||||||
|
2 year fixed |
85 |
3.49% |
3.19% |
£0 |
£50,000 |
£1,000,000 |
| Great Escape with Free Non-Disclosed valuation & £475 cashback | ||||||
|
2 year fixed |
85 |
3.49% |
3.19% |
£0 |
£50,000 |
£1,000,000 |
| Help To Buy 2 | ||||||
|
2 year fixed |
95 |
5.19% |
4.49% |
£499 |
£25,000 |
£570,000 |
|
5 year fixed |
95 |
5.49% |
4.99% |
£499 |
£25,000 |
£570,000 |
| Rate Switch | ||||||
|
2 year fixed |
85 |
3.49% |
3.19% |
£0 |
£5,000 |
£1,000,000 |
The bank is also offering free legal costs and cashback options on three products:
- 1.77 per cent 2 year fixed rate at 60 per cent LTV
- 2.49 per cent 5 Year fixed rate at 60 per cent LTV
- 2.95 per cent 5 Year fixed rate at 70 per cent LTV
While the first phase of the Help-To-Buy scheme applied only for newly-built properties and borrowers buying a home for the first time, the Help-To-Buy 2 includes old property as well as new builds (if the price is below £600,000) and all types of borrowers can apply, not just first-time buyers.
