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Barclays cuts raft of rates including NewBuy

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Barclays has become the latest lender to drop fixed rates for those with higher deposits and launch a two year 70% LTV at 3.29% with no application fee tomorrow.

The lender will lower six of its fixed rate mortgages by up to 0.30 percentage points, dropping its five-year fixed rate at 70% LTV to 3.99% – the lender’s lowest five-year deal this year.

The two-year fixed offered at 60% LTV will drop from 3.29% to 3.09% and the five year 80% LTV will drop to 4.29%. The products are offered with a £999 application fee, or £499 for customers who qualify for a Barclays loyalty mortgage.

Barclays has also cut its NewBuy deal from 5.89% to 5.69% and cuts its Future Fix product by 0.30 percentage points. Its Future Fix, a tracker followed by a fixed rate, is offering a lower fixed rate at 3.99% at 70 per cent LTV and a 4.29% 80 per cent LTV.

Andy Gray, head of mortgages at Barclays, said: “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.”

On Friday last week, Santander cut its five-year fixed rate mortgage to2.99% exclusively for existing direct current account and loyal mover customers after HSBC launched its 2.99% five-year fix the previous week.

Abbey for Intermediaries also cut its three and five-year fixed rates on the same day.

Dominic Lipnicki, director of Your Mortgage Decisions said he expects further lenders to cut rates, but tight lending conditions are maintaining a stranglehold on the market.

“The Government continues to put pressure on the banks to lend but rate cuts are not going to sort out the market for first-time buyers or those excluded by tight criteria. he opined.