News Column

Barclays-New and reduced mortgage rates

August 15, 2014



ENP Newswire - 15 August 2014

Release date- 14082014 - Barclays is tomorrow (Friday 14 August) launching new and reduced mortgage rates by up to 0.20 per cent age points for high LTV (Loan to Value), which will support first time buyers and those customers with a smaller deposit.

Our existing 90 per cent LTV 2 and 5 year fixed rates will be reduced by 0.20 per cent to offer new rates of 3.99 per cent and 4.79 per cent respectively. To improve the options for customers looking for between 80 - 85 per cent LTV Barclays is also launching a new 85 per cent LTV 5 year fixed at 3.99 per cent.

We are also reducing the rate on the 80% LTV Further Advance lifetime tracker by 0.50 per cent and the 80 per cent LTV large loan Lifetime Tracker by 0.76% meaning both products now offer a competitive rate of 3.99 per cent.

Andy Gray, Managing Director of mortgages at Barclays said:

'We are delighted to announce a number of rate cuts that will benefit first time buyers and those with smaller deposits looking to get on or move up the property ladder. The addition of a new five year fixed rate at 85 per cent, will give customers the option of longer term stability and protecting them from future base rate rises.

'We believe that by simplifying our range and aligning the follow-on rates for all our mortgage products with a competitive rate of 3.99 per cent (BBBR+3.49 per cent), Barclays can offer much better value for customers over the long term when considering most lenders move customers onto an SVR (Standard Variable rate) with an average rate of 4.4 per cent (CML July 2014)'.

Following new guidelines from the Financial Policy Committee on affordability testing, with effect from Tuesday 19th August, the affordability rate on residential applications will be 6.99 per cent. The affordability rate for Family Springboard and Help to Buy: mortgage guarantee applications will remain at 7.24 per cent.

Notes to Editors:

What are we launching?

New 85% LTV 5 Year Fixed at 3.99%

What are we changing?

Reducing our 90% LTV 2 Year Fixed by 0.20% to 3.99%

Reducing our 90% LTV 5 Year Fixed by 0.20% to 4.79%

Reducing our 80% LTV Large Loan Lifetime Tracker 0.76% to BBBR+ 3.49%

Reducing our 80% LTV Further Advance Lifetime Tracker 0.50% to BBBR+ 3.49%

The above changes apply across our Barclays Loyalty mortgages with a GBP499 fee and our Rate Switch only GBP0 fee products

Product

New Rate

Old Rate

Fee

LTV

Follow-On Rate

2Yr Fixed Loyalty

3.99%

4.19%

GBP499

90%

BBBR+3.49%

2Yr Fixed

3.99%

4.19%

GBP999

90%

BBBR+3.49%

5Yr Fixed

3.99%

NEW

GBP999

85%

BBBR+3.49%

5Yr Fixed

4.79%

4.99%

GBP499

90%

BBBR+3.49%

Rate Switch

2Yr Fixed

3.99%

4.19%

GBP0

90%

BBBR+3.49%

5Yr Fixed

3.99%

NEW

GBP0

85%

BBBR+3.49%

5Yr Fixed

4.79%

4.99%

GBP0

90%

BBBR+3.49%

Barclays is a major global financial services provider engaged in retail banking, credit cards, corporate and investment banking and wealth management with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 140,000 people. Barclays moves, lends, invests and protects money for 48 million customers and clients worldwide.


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Source: ENP Newswire


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