Barclays will tomorrow (Thursday 5 May) strengthen its Woolwich range of fixed rate mortgages further following the cuts before Easter. These include the introduction of a three year fixed rate at 3.99 per cent (70 per cent loan to value) with a lower application fee of £499 and extending the loyalty range giving Barclays customers better mortgage deals up to 85 per cent loan to value (LTV).
Sitting alongside the 3.99 per cent three year fixed rate at 70 per cent LTV will be a max 80 per cent LTV option priced at 4.68 per cent, also with a lower application fee of £499. For loans up to 85 per cent LTV the application fee has also been cut to £499. On the loyalty range a five year fixed rate up to 85 per cent LTV has been introduced for 5.48 per cent, giving existing Barclays current account customers better deals. The equivalent five year rate for customers who do not qualify is 5.69 per cent.
Three cuts will also take place on the two year fixed rate mortgage range – at 70 per cent LTV the rate will be cut from 3.35 per cent to 3.28 per cent with a £999 fee. The equivalent loyalty rate for Barclays current account customers will reduce from 3.28 per cent to 3.18 per cent and finally for customers looking at loans above £250,000 the rate will be cut from 3.18 per cent to 3.08 per cent.
These announcements follow the pre-Easter changes where tracker and fixed rates were cut by up to 0.32 percentage points to help protect borrowers from future base rate rises.
Andy Gray, head of mortgages for Barclays, said: “The cuts today are a further response to the recent decrease in swap rates and increased competition in the market. This should give a welcome boost to homeowners at this crucial time of year for the housing market, giving those borrowers who are concerned about when and how quickly base rate will rise the security they need by way of longer term fixed rates. With new rates available at 85 per cent LTV and lower fees we believe we have a number of options for customers.
ìDespite lower inflation figures and less of a call for base rate to rise this month, borrowers may have some further breathing space before their payments are impacted. We would urge the thousands of borrowers who are still on their lenders SVR to make the move to a cheaper mortgage rate to offset any rises in mortgage payments. All ‘Great Escape’ deals are aimed at borrowers who worry it would cost them too much to move to better rates elsewhere. They come with no application fee, free legal work and valuation and £300 cashback to cover the cost of a borrower’s exit fee for leaving their present lender. The deals available under Great Escape go up to 80 per cent LTV.”