High street lender to slash as much as 30bps on purchase and remortgage two-year fixes
Barclays has announced further rate reductions on a selection of products across its residential purchase and reward ranges.
Effective from tomorrow, November 17, the lender’s new purchase and remortgage two-year fixed rates will be slashed by as much as 30 basis points (bps).
On Barclays’ residential purchase product range, the rate on the 60% loan-to-value (LTV) two-year fix with a £899 product fee will be reduced from 5.10% to 4.80% while the fee-free option will have its rate cut from 5.45% to 5.20%. The rate on the 75% LTV deal with a £899 product fee will be reduced from 5.20% to 4.95%.
On the lender’s residential remortgage product range, the rate on the 60% LTV two-year fix with a £999 product fee will be slashed from 5.28% to 4.98%, while the rates on the 75% and 85% LTV options will be reduced from 5.39% to 5.12% and from 5.97% to 5.67%, respectively.
Brokers welcomed the latest move from Barclays, with one saying it would fire up the rest of the high street and take the rate war up a notch.
“This is a significant move by Barclays, with sub-5% two-year deals now available for both remortgages and purchases,” commented Justin Moy, managing director at EHF Mortgages. “This will definitely fire up the rest of the high street, and see other lenders battle to keep up with Barclays.
“Lower inflation and cheaper SWAP rates are driving some major improvements, which is great for those coming to their renewal.”
Stephen Perkins, managing director at Yellow Brick Mortgages, said “Barclays have thrown a match into the haystack” with its latest rate reductions.
“The lender rate war is going to heat up fast. More reductions will almost certainly follow very soon to the delight of homeowners around the UK.”
However, Laura Bairstow, founder of The Mortgage Masters, pointed out that while it was great to see rates under 5% for two-year fixes, they are only accessible on purchases for buyers who have a minimum of 25% deposit.
“Very few first-time buyers will benefit here, and that’s what we really need to inject life into the housing market,” Bairstow said. “However, this is certainly another step in the right direction, so let’s hope more lenders follow suit.”
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