Barclays Cuts Rates, Launches First-Time Buyer Mortgages

Barclays is launching new mortgage deals specifically designed for first-time buyers, as well as cutting rates on a range of existing mortgages by up to 0.5%.

From tomorrow (4th October), borrowers will be able to access two new deals:

New ‘Premier’ Fixed-Rate Mortgages:

Two-year fix: 4.85% interest rate, with a £899 fee. This is available for loans with a 90% loan-to-value (LTV) – meaning you only need a 10% deposit. This mortgage is available for loans between £5,000 and £570,000.
Five-year fix: 3.92% interest rate, with no fee. This is available for loans with a 60% LTV and is available for loans between £5,000 and £2 million.

Rate Reductions on Existing Mortgages:

In addition to the new deals, Barclays is also reducing rates on a number of its existing mortgages:

Two-year ‘Premier’ fix: The rate on this mortgage, which has a 60% LTV, has been cut by 0.23% to 3.96%. It has an £899 fee and is available for loans between £5,000 and £2 million.
Five-year ‘Premier’ fix: This 90% LTV mortgage has seen its rate cut by 0.18% to 4.42%. It has a £999 fee and is available for loans between £5,000 and £570,000.
Five-year ‘Mortgage Guarantee’ fix: This 95% LTV mortgage has been reduced by a significant 0.3% to 5.26%. There is no fee for this mortgage and it is available for loans between £25,000 and £570,000.

Cheaper Deals for Those Remortgaging:

If you are coming to the end of your current mortgage deal and are looking to remortgage, Barclays has also cut rates on two of its remortgage-only products:

Two-year fix: This 85% LTV mortgage has been cut by 0.5% to 5.32%. It has a £999 fee and is available for loans between £5,000 and £2 million.
Five-year fix: This 85% LTV mortgage has been reduced by 0.1% to 4.93%. It has a £999 fee and is available for loans between £5,000 and £2 million.

These rate cuts are a welcome boost for borrowers, particularly those who are struggling with the rising cost of living. The new deals for first-time buyers are also likely to be popular, as they offer competitive rates and low deposit options.