Lender introduces new two-year fixes and reprices 38 products across its residential and BTL ranges
Barclays has revised its mortgage line-up, introducing two new fixed rate products and cutting rates on 38 existing deals across its residential, reward and buy-to-let ranges, effective from tomorrow, Jan. 29.
A new two-year fixed residential purchase product has been added at 3.75%, available up to 85% loan-to-value (LTV) with a £899 fee. The bank has also launched a premier two-year fixed remortgage-only product at 4.19%, also up to 85% LTV with a £999 fee.
Within the core residential purchase range, selected rates at 85% and 90% LTV have been reduced by up to 0.35 percentage points. Two-year fixed rates at 85% LTV now start at 3.97% for a premier option with no product fee and 4.02% for the standard fee-free alternative. At 90% LTV, two-year fixes start at 4.15% for a premier product with a £899 fee, 4.20% for the standard £899-fee product, and 4.40% with no fee.
At higher loan-to-value, a three-year fixed rate at 90% LTV has been cut by 20 basis points to 4.48% with a £899 fee. Five-year fixed rates at 90% LTV have also fallen by 20 basis points, with pricing now from 4.12% in the premier range, 4.17% with a £899 fee, and 4.25% on a fee-free basis.
Barclays’ green home products at 85% and 90% LTV have also been repriced, with reductions of up to 25 basis points.
For existing borrowers, the Barclays reward range has seen further adjustments. One-year fixed reward rates with no product fee have been lowered by 30 basis points and now start from 4.48% at 60% LTV, 4.69% at 75% LTV and 5.09% at 90% LTV. Two-year fixed reward products have been reduced by up to 33 basis points, with rates now from 4.09% at 85% LTV, 4.48% at 90% LTV and 4.99% above 90% LTV. Five-year reward rates at 90% LTV and higher have been cut by 0.10 percentage points.
In buy-to-let, reward rates have been reduced by 0.10 percentage points across 13 products.
Barclays, one of the UK’s largest mortgage lenders, is also raising rates for some products and removing others.
Commenting on recent market activity, Aaron Strutt, product and communications director at Trinity Financial, said that changes from major lenders had begun to filter through again after a quieter spell.
“The big mortgage lenders have not been making as many rate or criteria changes over the last week although they are starting to come through now,” he noted. “The major banks and building societies had such a busy start to the year to show that they were open for business that the sheer volume of rate and criteria changes were always going to slow down.
“Barclays has made a mixture of rate changes including price increases and decreases, plus product withdrawals. It looks like Barclays is pulling its 3.56% two-year fix, 3.70% three-year fix and 3.78% five-year fix for premier customers.
“The cost of funding seems to have edged up, but Barclays has taken the unusual step of pulling and not replacing its cheapest rates. There is still time for applicants to get their mortgages agreed and secure these rates, but they will need to be quick. Barclays is one of the most generous lenders at the moment, offering cheap rates and six times salary income multiples.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
