Lender launches new product, adjusts rates, and revises ERCs
Barclays Mortgages has announced a series of changes to its product offerings, including the launch of a new premier product, adjustments to existing product rates, and revisions to early redemption charges (ERCs).
The new addition to Barclays’ portfolio is a Premier Exclusive mortgage designed for residential purchases only. The product offers a 4.34% interest rate on a three-year fixed term with a £999 product fee. It is available for loans between £5,000 and £2 million, at up to 60% loan-to-value (LTV).
Barclays has also made adjustments to its existing product rates. For buy-to-let purchases, the bank is decreasing interest rates on two of its tracker products. The 6.48% two-year tracker with a £1,295 product fee and 60% LTV will drop to 6.20%, and the 6.50% two-year tracker with the same fee and a 75% LTV will decrease to 6.25%.
The lender is increasing rates on several of its residential purchase mortgages. Notable increases include a rise from 4.38% to 4.53% on its Premier two-year fixed rate mortgage with a £899 product fee and 60% LTV, and a hike from 4.95% to 5.13% on its two-year fixed rate mortgage with an £899 product fee and 85% LTV.
Similar adjustments have been made across a range of other products, including Green Home fixed rate mortgages and those available for larger loans from £2 million to £10 million.
For remortgage customers, rates will also see an increase, including, the two-year fixed rate remortgage at 75% LTV with a £999 product fee, which will rise from 4.72% to 4.90%.
Additionally, Barclays has revised its ERC policy. Moving forward, the ERC for all two-year fixed products will be set at 2% of the balance repaid. For three-year products, it will be 3%; for five-year products, 4%; and for 10-year products, 6%.
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