Good news for prospective home buyers! Barclays, one of the big six of UK’s leading mortgage providers, has announced a substantial reduction in mortgage rates for home buyers, hopefully making homeownership more affordable and accessible moving forward. The move comes as part of the bank’s efforts to support the housing market and cater to the evolving needs of its customers.
Barclays Reduce Rates For Home Buyers
Effective from Thursday the 27th of July 2023, Barclays will be lowering interest rates on three of its most popular mortgage products. The updated rates will be relevant to first-time buyers and existing homeowners looking to remortgage. Here are the details of the reduced mortgage rates:
- 2-year Fixed £899 product fee, 60% LTV, Min loan £5k, Max loan £2m:
- Old Rate: 6.08%
- New Rate: 5.93%
- Difference of 0.15%
- Available for Residential Purchases
- 5-year Fixed £999 product fee, 60% LTV, Min loan £5k, Max loan £2m:
- Old Rate: 5.67%
- New Rate: 5.52%
- Difference of 0.15%
- Available for Residential Remortgages
- 5-year Reward Fixed £0 product fee, 60% LTV, Min loan £5k, Max loan £2m:
- Old Rate: 5.85%
- New Rate: 5.70%
- Difference of 0.15%
- Available for Product Transfers and Further Advances
The most significant reduction can be seen in the 2-year fixed mortgage product, which has dropped from 6.08% to 5.93%. This is expected to attract homebuyers looking for short-term stability and a competitive rate. For people planning on remortgaging their homes, the 5-year fixed product offers a reduction from 5.67% to 5.52%, giving homeowners the opportunity to lock in a favourable rate for an extended period. Rather than falling onto the expensive standard variable rate that the lender will automatically put borrowers on when their fixed period ends. Barclays’ 5-year reward fixed mortgage, with no product fee, is a useful option for existing customers looking for product transfers or further advances.
Why Are Barclays Reducing Rates?
For the last few months, the only news we have been getting out of lenders was rate increase, on a mass scale. However, now that inflation has come down, we should see more rate reductions coming from the larger banks and building societies. The rate cuts from Barclays are aimed at easing the burden on homebuyers amid the current economic climate, supporting the property market, and encouraging financial security for homeowners. Potential buyers and existing mortgage customers should explore the various mortgage options that Barclays and other lenders offer through a qualified mortgage advisor. To try and find a product and rate to suit their individual needs. Of course it’s essential to remember that mortgage rates may fluctuate over time, so acting promptly could be better for you than shopping around for too long.
What Could Be in Store?
Barclays’ decision to lower its mortgage rates, like HSBC yesterday and potentially more over the coming weeks, comes as a welcome development for the UK housing market, signalling positive prospects for the broader economy. With the reduced rates now in effect, more individuals and families may be inspired to take that important step towards homeownership or explore more mortgage options. As the demand for residential properties continues to rise, securing a mortgage with reduced rates can make a substantial difference in the overall financial commitment of a home purchase. Whether it’s a first-time homebuyer or someone looking to remortgage, Barclays’ new offerings provide an excellent opportunity to secure a competitive deal and make borrowers homeownership dreams a reality.
Speak To a Mortgage Advisor About Mortgage Rates For Home Buyers
At Oportfolio, our job is to keep up to date with all mortgage rate changes and product introductions. Call our team of brokers today for a free initial mortgage consultation where we can go through your wants and needs, and help you to find the best mortgage rate for your circumstances. We’re here to help.
