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First-time Buyers

Barclays cuts mortgage rates

paulajohn
Written By:
paulajohn
Posted:
Updated:
20/06/2013

Barclays is launching new deals and cutting the cost of its some existing mortgages by up to 0.7%.

As of tomorrow (Friday), Barclays will expand its ‘Great Escape’ range of mortgages.

The new range will include a five-year fixed rate charged at 3.19% exclusively for loans between £50,000 and £100,000. This deal is available up to a maximum of 60% loan-to-value (LTV).

Another five-year fixed rate charged at 3.99% will be offered on loans over £100,000, available up to 80% LTV with a two-year fixed-rate at the same LTV will be reduced from 3.74% to 3.59%.

All Great Escape mortgages come with no legal or valuation fees and cashback of £250.

The Family Springboard mortgage will be reduced by 0.7% from 4.69% to 3.99%. This mortgage allows parents and grandparents to help their offspring get on the housing ladder by holding 10% of the purchase price in a Helpful Start savings account, which means the homebuyer can be offered a 95% LTV mortgage. After three years the savings are released with interest, providing that the mortgage repayments have been kept up to date.

For borrowers of bigger loans. Barclays has relaunched its mass affluent range, offering a two year fixed rate at 1.99%, an offset mortgage at base plus 1.99% (currently 2.49%), or a five year fixed rate at 2.78%. These rates are all available for loans between £500,000 and £2m up to 65% LTV and with a fee of £1,999.

Further cuts are also made to fixed rate mortgages, with the two year fixed rate now available at 2.95%, down 18 percentage points from 3.13% at 80% LTV. Three year fixed rates have been cut by 20 percentage points, down from 2.75% to 2.55% at 70% LTV and 3.59% to 3.39% at 80% LTV.

Andy Gray, managing director of Mortgages for Barclays, said:

“With these new rates we are continuing our commitment to give homebuyers and remortgagers access to cheaper mortgages. We recognise the challenges facing first-time buyers and remortgagors in particular, which is why we have focussed on making the biggest changes in these areas.

“Our Great Escape mortgage has already helped thousands of homeowners who thought they were trapped with their old mortgage lender move to a better deal. With the new lower loan size option we are opening up the escape route to even more borrowers and helping them save money every month.”