New Barclays Mortgage Rates Announced At 3.71%
A new Barclays mortgage product at 3.71% has been announced this week, becoming the latest in quite a few recent announcements from big UK mortgage lenders who are all dropping their rates below 4%. In recent weeks there has been a mortgage ‘rate war’ or sorts which has seen many lenders dropping their rates significantly to compete against each other. These new rates across both residential mortgages and, in the case of recent NatWest buy-to-let product rate drops, investment property mortgages. In this article I will explore the new rate drops from Barclays and the impact that they could have on borrowers.
New Barclays Mortgage Rate Drops
The most significant change to come from Barclays in their recent rate drop announcement is that they will now be offering a 5-year fixed product for a purchase at a very enticing 3.71%. This product comes with an £899 fee and can be used up to a maximum of 60% loan-to-value (40% deposit and 60% mortgage). This product comes down from the previous low rate of 3.84%. To put that in to context and to measure the real impact that this rate drop could have for a borrower, let’s have a look at some figures.
Previous rate at 3.84%
Purchase price: 550,000
Mortgage: £330,000
Term: 35 years
Monthly payment: £1,430
New rate at 3.71%
Purchase price: £550,000
Mortgage: £330,000
Term: 35 years
Monthly payment: £1,404
Annual savings: £312 a year
Although not huge savings between the 3.84% and the 3.71% rate, the savings if someone moved from a 4% or 5% rate onto a 3.71% could work out to thousands of pounds per year.
Other New Barclays Mortgage Products
As well as the new low rate product of 3.71%, Barclays have also announced several other low and competitive mortgage rates and products that will become available to borrowers, subject to meeting full lending criteria. Some of the highlights are as follows:
- New 2 Year Fixed £1,999 product fee, 85% LTV, Min loan £2m, Max loan £5m at 4.75%
- New 5 Year Fixed £1,999 product fee, 85% LTV, Min loan £2m, Max loan £5m at 4.87%
- New 4.70% 2 Year Fixed £0 product fee, 60% LTV, Min loan £1k, Max loan £2m, will decrease to 4.43%
- New 4.37% 2 Year Fixed £999 product fee, 60% LTV, Min loan £1k, Max loan £2m, will decrease to 4.16%
- New 4.40% 2 Year Fixed £1,999 product fee, 70% LTV, Min loan £2m, Max loan £10m, will decrease to 4.19%
Speak To A Mortgage Broker
Rates are coming down at a rapid pace, and although not every product might be available to you, our dedicated and experienced whole of market mortgage brokers are here to help you find the most beneficial mortgage for you. Call or email our team today to arrange a fee free initial mortgage consultation. We are here to help.
