Barclays cuts rate on Bovis Homes' 'Perfect 10' mortgage deal

Barclays, through its mortgage arm Woolwich, has slashed the rate on Bovis Homes' 'Perfect 10' mortgage package by 1.20 percentage points to 3.79 per cent to continue to be at the forefront in helping homebuyers get moving with affordable mortgages at 90 per cent loan to value.

Almost one year on from launching 'The Perfect 10' which is a two year fixed, the rate has been reduced from 4.99 per cent to 3.79 per cent with an arrangement fee of £999, making this one of the most competitive rate for borrowers with a 10 per cent deposit since the recession hit. After two years the rate reverts to a lifetime tracker at base + 2.99 per cent, which equates to just 3.49 per cent at today's Barclays Base Rate.

The deal is available on any new Bovis Home at all of the company's developments across England and Wales.

The Barclays and Bovis Homes innovative partnership also provides buyers with free three year unemployment protection insurance if they were to lose their job from the date of exchange and £500 towards their legal fees.

Andy Gray, head of mortgages for Barclays, said: "Slashing the rate enables more buyers to purchase a new home with just a 10 per cent deposit at one of the most affordable rates since the recession. The deal also gives a measure of protection for customers, Barclays and Bovis Homes and is testament to our commitment to get lending at 90 per cent levels on the right track but in a way which is sustainable in the long term."

Bovis Homes chief executive David Ritchie said: "In the current climate housebuilders can't just be about bricks and mortar, and they can't sit back while homebuyers battle to raise the funds for a new home. We've been striving to find ways to help them move and this big cut in the initial two-year rate offers homebuyers a superb opportunity to get in there and snap up their dream home.

"'The Perfect 10' has always been a great solution for people struggling to get a deposit and now it is even better. We want to buck the lending trend that has left many people frozen in or out of the market -- and hopefully this rate cut will bring the bit of sunshine people need to get them moving."

The mortgage package is aimed at home-movers with limited equity and could particularly benefit first-time buyers who do not have to pay stamp duty on purchases up to £250,000. A typical first time buyer purchasing a Bovis Home at £150,000 would require a mortgage of £135,000 and will pay £697.02 a month with 'The Perfect 10' saving them around £170 a month or £4,000 over the two year period, compared to the average rate of 5.98 per cent for a two year fixed rate mortgage (90 per cent LTV).

For more information on 'The Perfect 10' scheme, customers should visit bovishomes.co.uk/perfect10.