Changes to affect two- and five-year deals across multiple LTV bands
Barclays has announced that it will increase rates on several of its residential fixed rate mortgage products, effective from tomorrow, Oct. 8.
The adjustments will apply to both two- and five-year fixed-rate offerings, covering a range of loan-to-value (LTV) brackets and including the lender’s Green Home range.
For borrowers at 85% LTV, the two-year fixed-rate product with a £899 fee will see its rate move from 4.14% to 4.19%. The equivalent fee-free option will rise from 4.38% to 4.43%.
At 90% LTV, the two-year fixed with a £899 fee will increase from 4.28% to 4.35%. The Premier version at the same LTV will also rise, from 4.27% to 4.34%. The fee-free 90% LTV product will be repriced from 4.48% to 4.55%.
Higher LTV products will also be affected. The two-year fixed at 95% LTV with no product fee will increase from 4.85% to 4.92%. The five-year fixed fee-free product at 95% LTV will increase from 4.80% to 4.87%.
Within the Green Home range, changes include the two-year fixed at 85% LTV with a £899 fee, which will rise from 4.04% to 4.09%. The 90% LTV fee-free Green Home product will increase from 4.38% to 4.45%.
The rate change follows Barclays’ recent update to its lending criteria, which now allows self-employed borrowers to use their full net profits for affordability assessments and lowers the minimum loan threshold.
In recent weeks, mortgage rates have generally risen, even though the Bank of England kept its base rate unchanged last month. Lenders are responding to ongoing economic risks, including persistent inflation and uncertainty over the timing of future rate cuts. In addition, wholesale funding costs—which impact mortgage pricing—have increased amid global economic pressures and investor caution.
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