Barclays mortgage rate reductions announced (Source: www.investopedia.com)
In a positive development for potential homebuyers, Barclays has just announced substantial reductions in mortgage interest rates across its Residential Purchase range. The news, delivered in a communication to brokers at Oportfolio Mortgages this morning, reveals that the reduced rates will come into effect starting tomorrow, Wednesday the 10th of January 2024.
Rate Reductions Announced For Residential Purchases
Key highlights of the residential purchase product changes include a reduction of up to 0.50% on select products, providing a welcome opportunity for individuals looking to secure a mortgage with favourable terms. These new reductions form part of what is being called the mortgage ‘rate war’ or 2024, where UK mortgage lenders are reducing their rates in succession, to try and compete against each other for new business in the first few weeks of 2024.
Here Are the Key Changes to Barclays’ Residential Purchase Range
- 2 Year Fixed 899 Product – 60% LTV
– Previous Rate: 4.62%
– New Rate: 4.17%
– Product Fee: £899
– Loan Range: £5,000 – £2,000,000
- 2 Year Fixed 899 Product – 75% LTV
– Previous Rate: 4.70%
– New Rate: 4.20%
– Product Fee: £899
– Loan Range: £5,000 – £2,000,000
- 2 Year Mortgage Guarantee Scheme Fixed 0 Product Fee – 95% LTV
– Previous Rate: 5.80%
– New Rate: 5.50%
– Product Fee: £0
– Loan Range: £25,000 – £570,000
These reductions in interest rates align with Barclays’ commitment to supporting the housing market and facilitating homeownership. The move is particularly significant for those looking to benefit from the Mortgage Guarantee Scheme, with the 95% Loan-to-Value product experiencing a noteworthy decrease from 5.80% to 5.50%.
What Will Be the Impact of These Rate Reductions
Barclays’ decision to lower mortgage rates is likely to stimulate the property market and attract more homebuyers, providing a timely boost to the real estate sector. Barclays is one of the UK’s biggest mortgage providers, so any significant change to their offerings is likely to cause a stir. Lower interest rates can contribute to increased affordability, making it easier for individuals and families to step onto the property ladder or move up the housing market.
Speak to a Mortgage Broker in 2024
At Oportfolio Mortgages we are expecting to witness heightened interest and inquiries from clients eager to take advantage of these reduced rates emerging so far in 2024. We believe that the changes will most likely create a positive ripple effect throughout the mortgage industry, benefiting both buyers and the broader housing market. For those considering a home purchase, now could be an opportune time to explore the updated offerings from Barclays and secure a mortgage with more favourable terms. As the new rates take effect, industry experts anticipate increased activity in the housing market, marking a promising start to the year for prospective homeowners. If you are in the market for purchasing property in 2024, then please feel free to get in touch with one of our brokers for a fee free initial mortgage consultation. We are here to help.
