Barclays is launching its first fixed rate mortgages from today and says they would be ideal for customers making their first step on the property ladder.
The bank has two new offers with a three- and a five-year term. At 10 per cent, the deposit is very low as well. Fixed rates are staring from 3.49 per cent for the three-year mortgage and from 3.59 per cent for the five-year one.
Barclays says the products are designed especially with reducing costs during the first year of the mortgage in mind.
Features of the two offers include:
| Product | LTV | First Year Rate | Term Rate | Application Fee | Min Loan | Max Loan |
| Stepped Fixed | ||||||
| 3 year fixed |
90% |
3.49% |
4.19% |
£0 |
£5,000 |
£500,000 |
| 5 year fixed |
90% |
3.59% |
4.19% |
£0 |
£5,000 |
£500,000 |
Barclays has calculated that at a loan size of £150,000 over a full term of 25 years and using a lower rate of 3.49 per cent/3.59 per cent in the first year instead of a 4.19 per cent, customers could save £689 on their three-year mortgage and £592 on the five-year one.
“We know that when moving into a new home, decorating and buying new furniture can be expensive. Our new Stepped Fixed Rate Mortgage is creating greater opportunities for new homeowners to get on the property ladder during 2015, and we hope will help homeowners manage their finances in their first year a little more easily,” Andy Gray, managing firector of mortgages for Barclays, commented.
