Rates increase on key fixed-rate terms for buyers and remortgagers
Barclays has announced it will raise rates by 0.15 percentage points across 62 residential mortgage products from tomorrow, March 19, covering its purchase-only, remortgage-only and existing customer reward ranges.
In the residential purchase range, the lender’s two-year fixed deal at 60% loan-to-value (LTV) with an £899 product fee will increase from 4.10% to 4.25%. A five-year fixed product at 85% LTV with no fee will increase from 4.55% to 4.70%.
The changes also apply across a wide spread of LTV bands and fee structures, including two-, three- and five-year fixes, plus selected green mortgage products.
Remortgage pricing is also being adjusted. Sixteen remortgage products will rise by 0.15%, including a two-year fix at 60% LTV with a £999 fee increasing from 4.16% to 4.31%. Barclays’ “The Great Escape” remortgage products are among those being repriced.
For existing borrowers, Barclays is increasing rates in its existing customer reward range. A two-year fixed rate at 60% LTV with a £999 fee will rise from 3.97% to 4.12%.
Barclays has also repriced seven products available for both purchase and remortgage. Within that set, a two-year fixed rate at 60% LTV with a £1,999 fee will increase from 4.21% to 4.36%.
“We are still expecting more rate hikes this week as the cost of funding mortgages has gone up,” said Aaron Strutt (pictured right), product director at Trinity Financial. “In a market like this, early planning and decisive action can save money and remove a lot of unnecessary stress.
“Over the last few years, we have seen fixed rates increase and come back down, and no doubt this will happen again. The difference this time is that the lenders still have their much-improved acceptance criteria and lots of income-stretch mortgages, but rather than Liz Truss reversing her mini-budget or the COVID pandemic coming under control, we need Donald Trump to have a good plan to bring a bit more stability back to the Middle East.
“The cheapest deals can often disappear overnight, which makes it important to act quickly if you need a mortgage. If you take too long to send your forms back to your broker or put off choosing a rate or delay checking the market, you could end up paying a significantly higher rate.”
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