Barclays cuts rates on fixed rate mortgages

In its eighth rate reduction in a row Barclays is making cuts of up to 0.41 percentage points to 60 per cent of its Woolwich fixed rate mortgage range.

The Great Escape fixed for two years at 75 per cent loan to value (LTV) sees the largest fall from 3.79 per cent to 3.38 per cent.

Substantial cuts of up to 0.36 percentage points will also take place for the second time this month at 80 and 85 per cent LTV on two and three year fixed rates. At 80 per cent LTV the two year fixed will reduce from 3.59 per cent to 3.38 per cent for customers who qualify for a Barclays Loyalty mortgage and 3.48 per cent for all other customers. At three years it will reduce from 4.13 per cent to 3.89 per cent. The 85 per cent LTV fixed for three years will fall from 4.49 per cent to 4.13 per cent. Cuts will also take place on the five year deals at these LTVs, meaning the cheapest five year we have available is 4.39 per cent (80 per cent LTV).

Other rate reductions include a two year fixed rate at 75 per cent (LTV), cut from 2.89 per cent to 2.79 per cent for customers who qualify for a Barclays Loyalty mortgage and 2.87 per cent for all other customers.

Andy Gray, head of mortgages for Barclays, said "The mortgage market continues to be fiercely competitive which has been driven by falling swap rates. This is good news for borrowers as they have the opportunity to fix at a lower rate than they may currently be paying, to save them money now and protect them against future interest rate rises. We have also for the second time this month, made substantial cuts on higher LTVs, slashing around 0.80 percentage points off three and five deals. These changes give borrowers who have a smaller deposit access to even lower rates, making home ownership even more affordable, and helping those with existing mortgages to save money.

"Remortgaging has built momentum this year across the market and our latest Great Escape package is the best deal we've offered at 75 per cent LTV since we launched these in the Autumn of 2010. Thousands of borrowers with mortgages at this LTV can now fix well below their SVR rate without having to pay any switching costs, making substantial savings to their monthly mortgage payments."

All our mortgage deals allow borrowers to remortgage using our ‘Switch and Save' service which provides free legal work and a valuation or £200 cashback. For borrowers opting for Great Escape 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 further information on Woolwich mortgages from Barclays, visit barclays.co.uk/mortgages.