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Barclays reduces tracker and fixed mortgage rates again

21st June 2011 Print

In its fifth rate reduction in a row, Barclays is cutting rates on its Woolwich fixed mortgages by up to 0.31 percentage points and introducing new low rate trackers to the range.

Barclays two year fixed rate mortgage is highly competitive up to 70 per cent loan to value (LTV) with a cut of 0.20 percentage points from 2.98 per cent to 2.78 per cent. The two year fixed rate Great Escape remortgage package (maximum 70 per cent LTV) is reducing from 3.74 per cent to 3.49 per cent, a cut of 0.25 percentage points. The biggest cuts are taking place are on the longer term fixed rate products with the five year (maximum 80 per cent LTV) reducing by 0.30 percentage points to 4.98 per cent. The equivalent five year rate for customers who qualify for Barclays loyalty mortgages is reducing by 0.31 percentage points to 4.78 per cent.

Alongside this, two new two year tracker mortgages are being launched. At 70 per cent LTV the rate will be 1.79 above base rate (currently 2.29 per cent) with an application fee of £999, and at 75 per cent LTV it will be 1.99 per cent above base rate (currently 2.49 per cent). Both revert to a competitive tracker of 2.99 per cent above base (currently 3.49 per cent) after the two years. 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: "With further falls to swap rates this month and the economic turmoil in Greece impacting rates, we are able to pass on cuts to borrowers across our mortgage range. We have introduced a competitive two year tracker to offer value in the market for those who are happy to see what happens to rates. With Switch and Fix, this gives borrowers the best of both worlds - a cheap tracker with the ability to fix when the time is right for them."

Home-owners who are sitting on their lenders standard variable rates can take advantage of the Great Escape deals. This allows them 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. For borrowers who want to opt for their own solicitor, the Great Escape range is also available with £375 cashback to help with legal costs in place of the free legal work available on the Great Escape deals. In addition, all mortgage deals including today's market leading two year fix allow borrowers to remortgage using our ‘Switch and Save' service which provides free legal work and a valuation or £200 cashback.