Barclays has announced a revamp of its mortgage offerings, both for residential purchases and buy-to-let (BTL) properties. This change, effective from the 5th of March, could have wide-reaching implications for borrowers.

Barclays has introduced a brand-new mortgage deal for those looking to purchase a home. If you’ve got your eye on a property and need a loan that covers 60% of its value (known as 60% loan-to-value or LTV), Barclays is now offering a rate of 4.34%. This deal comes with a £999 product fee. It’s an option worth considering if you’re in the market for a new home and have a significant deposit or equity from a previous property.

However, it’s not all good news. The bank has also decided to hike rates across several of its existing residential mortgage products. Specifically, for some of its 2-year deals with a 60% LTV, rates have gone up by between 0.10% and 0.15%. For those borrowing with a 75% LTV, expect increases ranging from 0.18% to 0.19%. And if you’re stretching to an 85% or 90% LTV, your rate could rise by between 0.18% and 0.23%.

Looking at longer-term borrowing, Barclays has pushed up rates on selected 5-year deals across various LTV brackets – 60%, 75%, and 85% – by 0.20%, with the rate for a 90% LTV 5-year mortgage seeing a 0.25% increase.

Green Homes and Remortgages Get Pricier

Barclays is also adjusting rates for its Green Homes range, with increases between 0.18% and 0.25%. This affects borrowers looking to invest in environmentally friendly and sustainable properties.

For those looking to remortgage, there’s a similar trend of rising costs. Various 2-year remortgage products have seen rate increases between 0.10% and 0.18%. Across the board, whether purchasing or remortgaging, Barclays has adjusted 2-year rates upwards by between 0.06% and 0.13%, and 5-year rates by between 0.06% and 0.15%.

Buy-to-Let Mortgages

In a more positive turn for investors, Barclays has decided to cut rates on two of its BTL tracker mortgages. One of these products has seen its rate reduced from 6.48% to 6.20%, with a £1,295 product fee for a 60% LTV. The other has dropped from 6.50% to 6.25%, with the same fee, but for a higher 75% LTV. These reductions could be welcome news for current or aspiring landlords, offering a slightly more affordable entry point into the rental market.

Fixed Rates and Early Repayment Charges

Barclays is also extending the end dates on all its fixed-rate products to the 30th of June and revising its early repayment charges. This means if you lock in a rate now, it’s set until mid-2024, offering some stability in what’s been a turbulent market.