Barclays has cut rates on its mortgage range for the sixth time in a row.
Among the new range of products launched from today (October 2), the standout change is a 1.94 per cent two-year fixed rate, which was previously available at a 60 per cent loan-to-value ratio.
The bank is now offering the same rate on loans at up to 75 per cent loan-to-value.
For customers who are looking to borrow up to 80 per cent loan-to-value, the new two-year fixed rate is 2.33 per cent.
Barclay’s best five-year fixed rate (2.99 per cent) will be extended up to 70 per cent loan-to-value, up from the previous 60 per cent loan-to-value limit. It’s also reducing the rates on both its 75 per cent and 80 per cent loan-to-value five-year fixed rates to 3.09 per cent and 3.49 per cent.
It’s also launching two new competitive tracker rates available for 1.49 per cent and 1.99 per cent with loan-to-value ratios of 75 per cent and 80 per cent respectively, both with no charges for early repayment.
Remortgagers the main target
While the new products are available for first-time buyers, homemovers and purchases, the bank is aiming the products at the remortgage market.
Barclays estimates there are currently 3.5 million mortgage holders in the UK sitting on their existing lender’s standard variable rate (SVR). Between November and March, a further 417,000 will likely join them as they switch from an existing mortgage deal.
The market average SVR is currently 4.4 per cent, meaning customers who remortgage onto competitive products can make significant savings.
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