Barclays cuts rates on 80 per cent loan to value mortgages

Barclays is reducing rates on its Woolwich mortgages (80 per cent LTV) by up to 0.21 per centage points from Thursday 29th July and at the same time introducing a drop lock facility for all new mortgage customers.

The key reductions across the 80 per cent LTV range include a cut of 0.21 per centage points on a two year fixed from 4.59 per cent to 4.38 per cent, 0.10 per centage points reduction on the three and five year fixed rates (three year 4.89 per cent to 4.79 per cent and five year 5.49 per cent to 5.39 per cent).

At the same time a lifetime tracker at 80 per cent LTV is being introduced at base plus 3.38 per cent with a £999 application fee.

The drop lock facility will be available to all new tracker and offset borrowers with Barclays. It will allow people who opt for a tracker or offset mortgages to switch to a fixed rate in the future without incurring an early repayment charge.

Andy Gray, head of mortgages for Barclays, said: "With speculation this week that UK interest rates are set to stay at record lows until 2014, the drop lock facility provides customers with peace of mind that they can go into a low tracker rate now and switch at a point in the future when they need greater security."

This is the second rate reduction in a row for 80 per cent loan to value deals and will be welcomed by those with smaller deposits. It also follows on from the announcement last month that Barclays is offering competitively priced mortgages at 90 per cent lending for customers buying a new Bovis Homes property. The deal for consumers purchasing from Bovis Homes is maintained at a competitive rate of 4.99 per cent for two years.

All fixed rate mortgages revert to a lifetime tracker rate at base plus 2.49 per cent after the fixed rate period. The remainder of our fixed, tracker and offset range is maintained at the competitive rates and includes deals such as the three year fixed rate (70 per cent LTV) at 3.89 per cent.