Lender trims limited BTL pricing while raising rates across core residential products
Barclays has set out a new round of pricing changes to its mortgage range, increasing rates on a number of residential fixed products for both purchase and remortgage, while trimming pricing on a small selection of buy-to-let deals.
Barclays is the fourth major lender to raise rates this week, following earlier moves by Nationwide, Santander, and HSBC.
The changes from Barclays, effective from tomorrow, Feb. 5, are concentrated in the residential range at 60% and 75% loan-to-value (LTV), including the lender’s standard, Green Home and Great Escape products. Most increases fall within a band of around five to 21 basis points, affecting both fee and fee-free options.
Within the core range, the only cut applies to a buy-to-let remortgage product. The two-year fixed BTL remortgage at 60% LTV is being reduced from 4.65% to 4.28%.
The rest of the core changes are upward moves. For residential purchase at 60% LTV, the two-year fixed rate with a £899 product fee for loans between £5,000 and £2 million is rising from 3.57% to 3.65%. The fee-free two-year fixed at the same LTV and loan range is moving from 3.77% to 3.85%. On five-year fixes at 60% LTV, the product with a £899 fee will increase from 3.79% to 3.90%, while the corresponding fee-free five-year fix will go from 3.89% to 3.98%.
At 75% LTV for residential purchase, Barclays is also adjusting its five-year fixes. The five-year fixed with a £899 fee, available on loans from £5,000 to £2 million, is increasing from 3.82% to 3.92%. The equivalent five-year fixed without a product fee is increasing from 3.94% to 4.00%.
The two-year fixed Green Home mortgage at 60% LTV with no product fee will rise from 3.67% to 3.75%. The five-year fixed Green Home product at 60% LTV with a £899 fee will increase from 3.69% to 3.80%, while the five-year fixed Green Home product at 75% LTV with the same fee will move from 3.72% to 3.82%.
On the residential remortgage side, Barclays is making modest upward adjustments to its five-year fixes. The five-year fixed at 60% LTV with a £999 product fee, for loans between £5,000 and £2 million, will go from 3.90% to 3.96%. At 75% LTV, the five-year fixed remortgage with a £999 fee and the same loan size range will edge up from 3.98% to 3.99%.
Meanwhile, the Great Escape remortgage range is seeing sharper movements. The five-year fixed at 60% LTV, with no product fee and a minimum loan of £50,000 up to £2 million, will rise from 4% to 4.15%. The 75% LTV version of this fee-free five-year fixed will be repriced from 4.12% to 4.18%.
Barclays has also revised its Existing Customer Reward range. In buy-to-let, the EMC Reward BTL 2-year fixed at 65% LTV, with no product fee and loans from £5,000 to £1 million, will be reduced from 4.38% to 4.28%.
However, residential EMC Reward products are being repriced upwards. At 60% LTV, the five-year fixed with a £999 product fee for loans between £1,000 and £2 million will increase from 3.90% to 3.96%. The fee-free EMC Reward five-year fixed at the same LTV and loan range will see a larger move, from 3.99% to 4.15%. At 75% LTV, the EMC Reward five-year fixed with a £999 fee will rise from 3.98% to 3.99%, while the fee-free five-year fixed at 75% LTV will go from 4.12% to 4.18%.
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