Barclays cuts rates further to help homebuyers

Barclays is cutting rates across its residential and buy-to-let mortgages by up to 0.50 percentage points.

This follows the previous extensive rate cuts of up to 1 per cent made on 10th January and will give even more borrowers access to cheaper deals.

The reductions include a drop of 0.25 percentage points on its two year Great Escape remortgage package from 3.99 per cent to 3.74 per cent for borrowers with a 20 per cent deposit (80 per cent LTV). This will help borrowers currently on competitors' standard variable rates (SVR) as they now stand to save even more money by remortgaging.

Other changes across the range include a highly competitive two year fixed cut from 3.49 per cent to 3.35 per cent and an attractive 2 year tracker cut by 0.50 percentage points to base +2.49 per cent. Both changes are for borrowers with a 20 per cent deposit (80 per cent LTV) and come with a £999 application fee and £499 for customers who qualify for a Barclays loyalty mortgage.

Andy Gray, Managing Director of Mortgages for Barclays, said: "This is a real boost for UK homebuyers, giving them access to cheaper mortgage deals, brought about by the combination of the low base rate and the continued benefits of the funding for lending scheme. We know that remortgaging remains an untapped opportunity for many SVR customers who are missing out on the potential savings by reviewing their mortgage. The reduction to our Great Escape remortgage package is designed to get this market moving by giving customers access to even greater savings. A borrower with a mortgage of £150,000 switching from a SVR of 4.74 per cent to this deal could now save more than £2,000* over two years."

Alongside these rate reductions, Barclays is launching two mortgages at 65 per cent LTV for loans over £300k and available up to £1.5m. A two year offset mortgage will offer a rate of Base + 2.49 per cent and a two year fixed rate at 2.19 per cent, will be the lowest 2 year fixed rate that Barclays has ever offered. Both come with a £1,999 application fee.

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