From today Barclays is offering its SME customers an instant cash back injection of 2% on loans intended to boost a business’ cash flow.
From tomorrow the lender will lower the rates on some of its fixed rate mortgages by up to 0.30%, including a 2-year fixed at 3.09% (70% LTV). For those with smaller deposits rates will be reduced by up to 0.20%.
It is also cutting its NewBuy mortgage (95% LTV) by 0.20% and cutting the rate on its Great Escape remortgage package at 70% LTV.
Barclays said the reductions in the cost of borrowing are all made possible by Funding for Lending scheme and the current low base rate.
Steve Cooper, chief products and segments officer at Barclays, said: “The cost of borrowing for UK SMEs has reached very low levels. SME borrowing is at its cheapest since 1987, and the combination of Funding for Lending and low base rates is also pushing down the cost of borrowing for personal loans and mortgages with super-low rates.
“Barclays will pass on the whole benefit we derive under Funding for Lending to our customers and we are optimistic that people will take advantage of this cheap time to borrow, and make the investment decisions that they have been putting off.”
