Barclays to offer 10-year fix at 3.89%
The lender said the 10-year fix was the lowest rate the bank had ever offered, the product is available up to 70% loan-to-value (LTV) with an application fee of £1,499.
Barclays will also cut its five-year fix from 3.39% to 2.99%, up to 70% LTV. The bank said that this move is to help borrowers who wish to secure their mortgage payments over a longer period.
The new range of products will be available from tomorrow, Tuesday 4 June.
Andy Gray, managing director of mortgages for Barclays, said:
“This is a real boost for UK homebuyers, giving them access to cheaper mortgage deals, brought about by the combination of the low base rate and the continued benefits of the Funding for Lending Scheme.
“Fixed rates are proving increasingly popular with borrowers who are looking for the certainty of securing their mortgage payments over the longer term and we have helped these customers by giving them access to some of our lowest ever fixed rates in 2013, including the 10-year fixed launched today.
“As well as being of benefit to homebuyers, these products are also available to remortgage customers – with mortgage rates at historic lows, we would encourage existing homeowners to review their mortgage as they could benefit from substantial cost savings.”
Residential mortgage changes:
Two-year fixed 75% LTV – 2.49%, £999 fee (Loyalty £499)
Two-year fixed 80% LTV – 3.15%, £999 fee (Loyalty £499)
Five-year fixed 70% LTV – 2.99%, £999 fee (Loyalty £499)
Five-year fixed 80% LTV – 3.69%, £999 fee (Loyalty £499)
10-year fixed 70% LTV – 3.89%, £1,499 fee
Two-year tracker 70% LTV – Base + 1.68%, £999 fee (Loyalty £499)
Two-year offset 70% LTV – Base + 2.49%, £1,499 fee (Loyalty £749)
Lifetime offset 70% LTV – Base + 2.89%, £1,499 fee