Barclays the latest to cut rates

Barclays the latest to cut rates

Barclays Bank plc

Barclays is reducing the rates on six of its fixed rates mortgages by up to 0.30 percentage points on Wednesday 25 July.

It is also bringing out a two-year deal at 3.29% with no application fee for consumers buying a house at 70% loan to value (LTV).

The reductions across the range include a drop of 0.30 percentage points on the five year fixed rate at 70% LTV with a rate of 3.99%, the lowest five year deal Barclays has offered this year.

The two year fixed at 60% LTV will fall from 3.29% to 3.09% and the five year (80% LTV) will reduce by 0.20 percentage points to 4.29%. All come with a £999 application fee and £499 for customers who qualify for a Barclays loyalty mortgage.

“We have decided to introduce a market leading package for customers purchasing a house to help lower the upfront costs and get a really competitive rate,” said Andy Gray, head of mortgages at Barclays.

“We have recently seen an improvement in the SWAP rates and so we’ve taken the opportunity to pass these benefits onto customers by reducing some of our more popular fixed rates to give them some great deals – including a five year rate below 4%, the lowest we’ve offered this year.”

Meanwhile, Barclays’ NewBuy product is reduced from 5.89% to 5.69% and there is a reduction of up to 0.30 percentage points on Future Fix. Future Fix combines the flexibility of a base rate tracker with the security of a fixed rate follow-on rate, with the fixed element reducing to 3.99% (70% LTV) and 4.29% (80% LTV). The tracker rates remain unchanged.

Residential mortgages revert to a lifetime tracker of base +3.39% for mortgages up to 80% and base +3.74% above.