Barclays set to ‘mop up' with fee free and cashback fixed rate mortgage

Barclays' further discount on its fixed rate mortgage - ‘The Great Escape' - sends out a clear signal that the giant intends to mop up customers unhappy with other lenders' SVR increases, says uSwitch.com, the independent price comparison and switching service.

Michael Ossei, personal finance expert at uSwitch.com, says: "On the face of it Barclays appears to be swimming against the tide. But this further discount coupled with no fees and cashback on its fixed rate mortgage is an inspired move, as it means that it is now in position to mop up other lenders' disgruntled customers. And there's likely to be a sizeable pool of them - just over one million in fact - with Halifax, Co-op, RBS and Santander, to name a few, increasing their standard variable rates from the 1st May.

"Barclays is sending these customers a clear signal that it wants their mortgage business - not only is the rate attractive, but there are also no fees which will be a bonus in these hard-pressed times. The rate isn't market leading, but the fact that there is no fee means that Barclays will be swimming alone in this pool, certainly until another lender wises up to the opportunity of some easy fishing and finds some equally attractive fee-free bait to offer those switching away from SVRs."

For more information, visit uSwitch.com.