Barclays has unveiled a number of changes to its mortgage range after lowering rates on some of its two- and five-year fixed products and introducing a new fixed rate of 1.95 per cent.
Further rate cuts were applied across the bank’s two-year fixed range at 60 per cent and 65 per cent loan-to-value for both home buyers and clients seeking to remortgage, while its buy-to-let range has also seen rate reductions across two-year fixed and tracker rates.
The bank, which made these changes in anticipation of “market activity to increase” in the popular month of September, said it was keen to demonstrate its commitment to the mortgage sector and hone in on the demand for two-year fixed rate deals.
Within its open market fixed rate range, its 65 per cent LTV two-year fixed rate product has been reduced by 20 basis points to a rate of 1.95 per cent, while its five-year fixed rate product has been cut by 30 basis points to 2.99 per cent.
Its 60 per cent LTV two- and five-year fixed rate products, meanwhile, have been reduced by 26 and 30 basis points respectively.
Other reductions were made to its two-year ‘loyalty’ and ‘great escape’ 60 per cent LTV mortgages, which saw rate cuts of 26 and 20 basis points.
In Barclays’ buy-to-let range, two-year fixed rate products of 60 per cent LTV and 75 per cent LTV also saw reductions of 20 and 40 basis points, while its buy-to-let tracker rates were also cut.
Rates on the two 60 per cent LTV buy-to-let trackers were reduced by 60 basis points, while the two 75 per cent LTV mortgages saw cuts of 30 basis points.
Provider view: Andy Gray, managing director of mortgages for Barclays, said: “As we approach September, the time of year traditionally known as the remortgage season, we anticipate market activity to increase. The further rate cuts we’re introducing to our range demonstrate our ongoing commitment to providing borrowers with access to lower rates and support those seeking certainty on their mortgage payments. Two-year fixed rates remain very popular, offering great value and we are pleased to be able to offer customers even better deals at a low of 1.95 per cent.”
Adviser view: Peter Gettins, product manager at Somerset-based London & Country Mortgages, said: “As far as these deals are concerned, they are very good news for borrowers. The outstanding ones for me are the five-year fixes. The core product at 3.09 per cent is the straight market-leader, and the ‘mass affluent’ 2.99 per cent is, I believe, the first five-year fix below 3 per cent for more than a month. The £500,000 minimum loan means it is fairly limited but still seems a notable move. The two-year rates are also very good – fixing at 1.99 per cent is hard to ignore, though there are a few other options in similar territory. Fixed rates are very much on the agenda at the moment, especially with two MPC members voting for a rise at the last meeting, so these are going to make attractive options for anyone concerned about rates going up.”
