The 2-year Great Escape will be reduced from 3.49% to 3.29% for those with a deposit or equity of 30% which allows customers to switch their mortgage to Barclays with no application fee, free legal work, free valuation and £300 cashback.
A borrower switching from a 4.74% SVR to a Barclays 2-year fixed Great Escape the new rate will make a saving of more than £2,800 over the two years.
Barclays research further shows that the average homeowner spent 14.9% of their take home pay on mortgage payments last month. Borrowers on competitor SVRs whose payments are increasing by 0.50 percentage points will see this increase to 16.2% following the rate rise.
The other key rate reductions are a drop of 0.20 percentage points on selected 2-year fixed rates. For those with a 40% deposit, the rate will now be 2.69%, and a 30% deposit 2.89%. These rates come with the standard £999 application fee and £499 for customers who qualify for a Barclays loyalty mortgage.
These deals also allow borrowers to remortgage using the lender's Switch and Save service which also helps with remortgage costs, offering free legal work plus a valuation or £200 cashback.
Andy Gray, head of mortgages at Barclays, said: “We know that an increase in competitor SVRs will put extra burden on consumers who are already squeezed due to other household costs rising. The good news is that fixed rates are near historic lows, so many of these customers stand to gain from remortgaging to a new product.
"These new deals are about showing borrowers who are impacted by higher rates that there are other options to move to a cheaper fixed rate elsewhere and as a result we are expecting these deals launched today to prove very popular.”
All these deals revert to a lifetime tracker of base plus 3.39%. The remainder of Barclays' fixed, tracker and offset range is maintained.
