Barclays has lowered rates on a number of its mortgage deals and introduced two competitive Great Escape deals.
The bank says speculation around interest rate rises is likely to fuel interest in remortgaging for the rest of this year.
With an estimated 285,000 mortgage customers coming to the end of an existing deal between August and December, this will likely create a vast £33bn pool of potential remortgage business.
Many customers coming off existing deals will move from rates between 3 to 4 per cent onto an average Standard Variable Rate (SVR) of 4.4 per cent.
Factor in a potential Base Rate increase of 0.25 per cent and customers could see their monthly repayments increase between £55 and £136 per month, Barclays says.
In anticipation, the bank has dropped rates on key fixed and tracker products by up to 0.5 per cent, and has launched two new Great Escape products with £0 application fee, free legals, free valuations and £200 cash back towards an existing lender’s exit fee.
That means customers switching from an SVR of 4.4 per cent onto Barclays’ new 75 per cent loan-to-value two-year 2.89 per cent Great Escape fixed rate could expect to save over £3,000 over two years on a balance of £150,000.
New products offered:
• New 75 per cent LTV 2 Year Great Escape Fixed at 2.89 per cent
• New 60 per cent LTV 5 Year Great Escape Fixed at 3.49 per cent
Product changes:
• 75 per cent loan-to-value (LTV) two-year fixed rate reduced 0.15 per cent to 2.39 per cent
• 85 per cent LTV two-year fixed rate reduced by 0.05 per cent to 3.19 per cent
• 85 per cent LTV two-year Great Escape fixed rate reduced by 0.5 per cent to 3.49 per cent
• 65 per cent LTV two-year Mass Affluent Offset reduced by 0.5 per cent to Barclays Bank Base Rate (BBBR) + 1.49 per cent
• 75 per cent LTV two-year offset reduced by 0.3 per cent to BBBR + 1.99 per cent
• 75 per cent LTV Lifetime Offset reduced by 0.20 per cent to BBBR + 2.49 per cent
• 60 per cent LTV two-year tracker rate reduced 0.20 per cent to BBBR + 1.29 per cent
• 70 per cent LTV two-year tracker rate reduced by 0.19 per cent to BBBR + 1.49 per cent
• 95 per cent LTV Family Springboard mortgage rate reduced by 0.20 per cent to 3.79 per cent with no application fee
