It reveals who it will target with its latest offering
Barclays is set to introduce a range of new mortgage products targeting first-time buyers and second movers, alongside reduced rates on several existing products.
The changes, which will apply to both residential purchase and remortgage options, will take effect from Wednesday, September 25.
The new products being introduced include a selection of fixed rate offerings, primarily for residential purchases. One option is a two-year fixed rate product at 4.75%, with a £1,999 product fee, available for loans with a maximum loan-to-value (LTV) of 85%. The minimum loan amount is £2 million, and the maximum is £5 million. Another offering is the Premier five-year fixed rate at 4.60%, with a £999 product fee and a 90% LTV, available for loans between £5,000 and £570,000.
Barclays, one of the UK’s largest mortgage lenders, will also offer a five-year fixed-rate product at 4.87% with an 85% LTV, a £1,999 product fee, and loans between £2 million and £5 million. Finally, a Green Home two-year fixed rate mortgage will be available at 4.33% with no product fee at 60% LTV, and loan amounts ranging from £5,000 to £2 million.
The lender will also implement rate cuts on a variety of existing residential mortgage products for both purchases and remortgages, with reductions ranging from 0.14% to 0.34%.
For residential purchases, the Premier five-year fixed rate product, currently at 3.83%, will drop to 3.70%, with a £899 product fee and a 60% LTV. Another five-year fixed rate product at 60% LTV will see its rate reduced from 3.84% to 3.71%, with a £899 product fee.
In the remortgage-only category, the Premier two-year fixed-rate product at 4.37% will decrease to 4.16%, with a £999 product fee and a 60% LTV. A similar two-year fixed rate mortgage will see its rate fall from 4.40% to 4.19%, with a £999 product fee. The Great Escape two-year fixed rate product, which carries no product fee, will see a reduction from 4.77% to 4.43%, at 60% LTV.
For both purchases and remortgages, the two-year fixed rate mortgage at 60% LTV will see its rate reduced from 4.40% to 4.19%, while the two-year fixed rate product at 70% LTV will drop from 4.55% to 4.29%, both with a £1,999 product fee.
The high street lender will also reduce rates on several products in its Reward Range for existing customers. The EMC Reward two-year fixed rate mortgage at 60% LTV will decrease from 4.37% to 4.16%, with a £999 product fee. The 6.29% EMC Reward PTL two-year tracker mortgage will drop to 5.94%, with a £299 product fee and a 65% LTV.
Earlier this month, Barclays reintroduced three mortgage products and lowered rates on several existing offerings, signalling the lender’s effort to stay competitive as interim results for the first half reveal a decline in its mortgage lending business.
Recent pricing study by Bloomberg Intelligence also revealed that high street lenders – including Barclays – face mounting pressure on their net interest margins due to tightening mortgage spreads.
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