Barclays bank have announced that they will be increasing their mortgage rates again in line with countless other lenders. We have coined the term lender panic in recent months to name the mass hysteria that mortgage lenders seem to be going through right now as inflation and the cost of living increases. Although the majority of mortgage customers are still able to afford their mortgage payments, it seems that lenders are jumping at the opportunity to up their rates and price out thousands of new mortgage customers.
The rate and product changes announced by Barclays Bank are as follows:
- Barclays will raise rates by up to 44 basis points on a range of residential and buy-to-let loans, as well as cutting cashback amounts on some deals and raising them on others.
- Among the high street bank’s residential purchase loans, a two-year fixed-rate 75% LTV offer, with no product fee, lifts by 25bps to 3.95%. Minimum loan £5,000, Maximum loan £2m.
- A five-year fixed-rate 90% LTV deal, with a £999 product fee, increases by 20bps to 4.09%. Minimum loan £5,000, Maximum loan £570,000.
- Among its residential remortgage loans, a five-year fixed-rate 85% LTV offer, with a £999 product fee, rises by 20bps to 3.89%. Minimum loan £5,000, Maximum loan £2m.
- A Great Escape five-year fixed-rate 85% LTV loan, with no product fee, lifts by 20bps to 4.11%. Minimum loan £50,000, Maximum loan £2m.
- Among its residential purchase and remortgage loans, a two-year fixed-rate 60% LTV deal, with a £999 product fee, lifts by 36bps to 3.68%. Minimum loan £5,000, Maximum loan £2m.
- A five-year fixed-rate 60% LTV loan, with a £999 product fee, rises by 44bps to 3.83%. Minimum loan £5,000, Maximum loan £2m.
- Among its BTL purchase loans, a five-year fixed-rate 75% LTV deal, with a £1295 product fee, increases by 40bps to 3.46%. Minimum loan £35,000, Maximum loan £1m.
- Among its BTL remortgage loans, a five-year fixed-rate 75% LTV offer, with a £1795 product fee lifts by 20bps to 3.50%. Minimum loan £35,000, Maximum loan £1m.
- And among its BTL purchase and remortgage loans, a five-year fixed-rate 60% LTV deal, with no product fee rises by 20bps to 3.75%. Minimum loan £35,000, Maximum loan £1m.
- A five-year fixed-rate portfolio 75% LTV, with a £2495 product fee, lifts by 20bps to 3.50%. Minimum loan £35,000, Maximum loan £1m.
- Cashback is lifted to £400 from £300 on several residential remortgage loans where the borrower uses their own solicitor, including a two-year fixed-rate 60% LTV offer, with no product fee, at 3.85%. Minimum loan £50,000, Maximum loan £2m.
- And a five-year fixed-rate 85% LTV deal, with no product fee, at 4.11%. Minimum loan £50,000, Maximum loan £2m.
- Also, cashback is cut to £150 from £250 on several residential remortgage loans with free legals, including a Great Escape two-year fixed-rate 60% LTV offer, with no product fee, at 3.85%. Minimum loan £50,000, Maximum loan £2m.
- And a 3.96% Great Escape five-year fixed-rate deal, with no product fee, at 75% LTV. Minimum loan £50,000, Maximum loan £2m.
Louis Mason from Oportfolio Mortgages in Putney, South West London had this to say:
“Another one bites the dust……I’ve said it before and I’ll say it again. The lenders are all in a state of unnecessary panic right now. And every time they up their rates, it just stokes the fire. I personally feel that the lenders are jumping to conclusions and their faith in borrowers is misplaced unfortunately and for many people, mortgages are going to become unattainable and unaffordable for the time being.
However, we can help our clients and anyone else who needs our help to become more comfortable. We can’t guarantee low rates, but we can get the lowest rates and the best deals available so that you are getting the best out of your mortgage. By remortgaging your property on to a fixed rate now, you can avoid any more rate rises in the next 12-24 months. Just call our advisors today to talk through your options.”
If you or anyone you know is concerned about rising mortgage rates, please give our friendly and helpful advisors a call today to see how we can help.
