Fixed rate mortgage falls as Barclays launches zero fee mortgage

Barclays is lowering six of its fixed rates mortgages by up to 0.30 percentage points and introducing a market leading package for two years at 3.29 per cent with no application fee for consumers buying a house at 70 per cent 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 per cent LTV with a rate of 3.99 per cent, the lowest five year deal Barclays has offered this year. The two year fixed at 60 per cent LTV will drop from 3.29 per cent to 3.09 per cent and the five year (80 per cent LTV) will reduce by 0.20 percentage points to 4.29 per cent. All come with a £999 application fee and £499 for customers who qualify for a Barclays loyalty mortgage.

Andy Gray, Head of Mortgages at Barclays said: "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. 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 per cent, the lowest we've offered this year."

Elsewhere other changes focus on NewBuy which is cut from 5.89 per cent to 5.69 per cent and a drop 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 per cent (70 per cent LTV) and 4.29 per cent (80 per cent LTV). The tracker rates remain unchanged.

Residential mortgages revert to a lifetime tracker of base +3.39 per cent for mortgages up to 80 per cent and base +3.74 per cent above. The remainder of our fixed, tracker and offset range is maintained.

For further information on Barclays mortgages visit barclays.co.uk/mortgages.