More lenders could follow suit, says industry expert
While several major lenders have raised mortgage rates in recent weeks, Barclays is set to lower pricing on some of its mortgage products, including a few deals at high loan-to-value (LTV) ratios. The changes will take effect from tomorrow, Oct. 24.
The high street lender has announced that its five-year fixed rate at 95% LTV, with no product fee, will fall from 4.87% to 4.82%.
A new five-year fixed rate at 80% LTV, also with no product fee, will be introduced at 4.28%.
The five-year fixed at 75% LTV with an £899 fee will drop from 4.14% to 4.05%, while the equivalent with no product fee will decrease from 4.25% to 4.21%. The Green Home 75% LTV will be repriced from 4.04% to 3.95%.
The five-year fix at 60% LTV with an an £899 fee will move from 4.11% to 4.01%, while the fee-free equivalent will have its rates reduced from 4.23% to 4.19%. The Green Home five-year fixed at 60% LTV with an £899 fee will be reduced from 4.01% to 3.91%. The Premier five-year fixed at 60% LTV with an £899 fee will be reduced by 10 basis points (bps) from 4.1% to 4%.
Other reductions apply to products with shorter two-year terms. For borrowers seeking 95% LTV, the two-year fixed with no product fee will fall from 4.92% to 4.87%.
At 75% LTV, the Premier two-year fixed with an £899 fee will be cut from 3.95% to 3.87%, and the standard version from 3.96% to 3.88%. The two-year fixed with no product fee at this LTV will reduce from 4.16% to 4.08%.
The Premier two-year fixed at 60% LTV with an £899 fee will drop from 3.91% to 3.85%, while the standard two-year fixed at the same LTV and fee will decrease from 3.92% to 3.86%. The two-year fixed at 60% LTV with no product fee will move from 4.12% to 4.06%.
The Green Home two-year fix at 60% LTV with no product fee will fall from 4.02% to 3.96%, while the one at 75% LTV will drop from 4.06% to 3.98%.
“Barclays’ latest reductions come as funding costs have eased further, with SONIA swaps down around 6–9bps across the curve over the past day and roughly 20bps lower than a month ago,” said mortgage expert Nicholas Mendes (pictured right), from prominent London broker John Charcol.
“Most of the cuts are concentrated at lower LTV tiers, where lenders have more room to adjust margins, but there are also modest trims at 95% LTV suggesting a little more confidence returning at the higher end.
“With the curve now implying a shallower path for bank rate, we could see a few more lenders follow suit in the days ahead.”
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