Barclays cuts rates on mortgages

Barclays is reducing rates on its Woolwich mortgages by up to 0.70% from Wednesday 23 June, further enhancing its commitment to higher loan to value borrowing.

This follows the announcement earlier this month that Barclays is offering competitively-priced mortgages at 90% lending for customers buying a new Bovis Homes property, narrowing the gap between 70% and 90% mortgage rates. The deal for consumers purchasing from Bovis Homes is fixed for two years at 4.99%.

The key reductions this week include a cut of 0.70 percentage points on a two year fixed rate mortgage (up to 80% LTV) from 5.29% to 4.59%, a reduction of 0.60 percentage points on a three year fixed rate (up to 80% LTV) from 5.49% to 4.89% and a cut of 0.40 percentage points for mortgages up to 85% LTV from 6.19% to 5.79%. All deals come have a £999 application fee. Two other fixed rate deals are being reduced at the 75% LTV tier and there will be a slight increase on the five year fixed for loans up to 70% LTV.

Andy Gray, Head of Mortgages for Barclays, said:

“The improvement to the highest loan to value products will be welcomed by those with smaller deposits, but who still need the certainty of a fixed rate giving a measure of protection from future base rate increases for those who need it most.”

All fixed rate mortgages revert to a lifetime tracker rate at base plus 2.49% after the fixed rate period.

The tracker mortgage range will be maintained and currently includes deals such as base plus 2.19% (up to 70% LTV, £200k minimum loan) and base plus 2.69% (up to 75% LTV), giving consumers some of the strongest rates on the high street. The offset range for loans up to 70% LTV also continues to be maintained at its present rates and a new 75% LTV product at base plus 2.99% is added.