Barclays is to cut mortgage rates for buyers and remortgagers and the reductions will also apply to those with lower deposits.
The mortgage lender said it would be lowering prices by up to 0.26% and this means it now offers a deal with a rate of 3.88%.
The two-year fixed rate deal for Premier customers comes with an £899 fee and is for customers who need to borrow at 60% loan-to-value (LTV) to purchase a property.
There is also a 3.91% rate for remortgaging customers who are borrowing at 60% LTV, this comes with a £999 fee and is also for a two-year fixed rate.
But customers with lower deposits are also benefiting from the cuts. For example, the Premier two-year fixed rate for buyers with a 90% LTV (10% deposit) has been reduced from 4.64% to 4.38%. It comes with an £899 fee.
The new, lower prices come into effect tomorrow (Wednesday 25 June) and have been welcomed by brokers.
Harry Goodliffe, director at HTG Mortgages, speaking via the Newspage agency said: “Barclays making moves like this is a good sign, as it shows lenders are still hungry for business, especially in the higher LTV space where buyers have been hit hardest.
“These cuts won’t trigger a stampede, but they offer some breathing space for those feeling squeezed. It’s not a rate war, but it is a positive step and momentum counts. Fingers crossed this encourages other lenders to sharpen their pencils, too.”
Meanwhile, Michelle Lawson, director at Lawson Financial, also talking to Newspage, said: “Despite the ongoing turmoil in the Middle East, swap rates, which affect fixed rate mortgage pricing, appear relatively stable and have come down a fraction.
“The question is whether swaps edging down slightly is the start of a trend or a blip. Either way, this is some positive news for borrowers and those remortgaging.”
