Barclays reduces mortgage rates again

In its fourth rate reduction in six weeks, Barclays is cutting rates on Woolwich fixed and tracker mortgages by up to 0.21 percentage points.

The new rates include a highly competitive two year fixed rate deal at 2.98 per cent (maximum 70 per cent loan to value) and a lifetime tracker at 2.38 per cent above base (maximum 75 per cent LTV).

The majority of the fixed rate range will see reductions with the largest cuts taking place on the popular two- and three-year fixed rates available up to 70 per cent loan to value (LTV). The three year deal is reducing from 3.99 per cent to 3.78 per cent with an application fee of £499, and the two year from 3.18 per cent to 2.98 per cent with a fee of £999. The equivalent two year rate for customers who qualify for Barclays loyalty mortgages is reducing by 0.10 percentage points from 2.99 per cent to 2.89 per cent. For borrowers who want to opt for a lower fee of £199, the two year rate will be cut from 3.99 per cent to 3.79 per cent.

At the same time the lifetime tracker available up to 75 per cent LTV is being cut by 0.19 percentage points from base +2.57 per cent to base +2.38 per cent with a £999 application fee. The equivalent rate on the loyalty range has been cut by base + 2.39 per cent to base +2.28 per cent. The competitive lifetime tracker at base +1.97 per cent remains available. All Woolwich tracker mortgages come with ‘Switch and Fix' which allows borrowers to switch to any current Woolwich fixed rate mortgage deal with no early repayment charge giving them the opportunity to benefit from low tracker rates now, with the security of fixing their payments at any point they choose.

Andy Gray, Head of Mortgages for Barclays, said: "We have been continually cutting rates since early April in response to falling swap rates and the competition in the market, with some rates having decreased by up to 52 percentage points since then. Our lifetime trackers are proving popular at the moment because of the longer than anticipated low base rate environment but mid-term fixed rates are also attracting attention from those who want the certainty of fixing their payments now."

Reductions are also being made on the Great Escape range which allows borrowers to switch their mortgage with no application fee, free legal work, free valuation and £300 cashback to cover the cost of their existing lender's mortgage exit fees. The two year fixed rate deal (75 per cent LTV) is cut from 4.19 per cent to 4.04 per cent, a reduction of 0.15 percentage points and the lifetime tracker at 75 per cent LTV is cut from 2.69 per cent to 2.57 per cent. For borrowers who want to opt for their own solicitor, the Great Escape range is now available with £375 cashback to help with legal costs, in place of the free legal work available on the Great Escape deals.

Andy Gray comments: "This is an ideal time for the hundreds of thousands of families who are sitting on their lenders standard variable rates to make the move to a cheaper mortgage rate which will offset any rises in mortgage payments when base rate does start to rise. With the range of options available our new rates should prove extremely popular."

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