The FINANCIAL — Barclays is reducing rates on its Woolwich mortgages by up to 0.70 per cent from Wednesday 23 June, further enhancing its commitment to higher loan to value borrowing.
This follows the announcement earlier this month that Barclays is offering competitively-priced mortgages at 90 per cent lending for customers buying a new Bovis Homes property, narrowing the gap between 70 per cent and 90 per cent mortgage rates. The deal for consumers purchasing from Bovis Homes is fixed for two years at 4.99 per cent.
The key reductions this week include a cut of 0.70 percentage points on a two year fixed rate mortgage (up to 80 per cent LTV) from 5.29 per cent to 4.59 per cent, a reduction of 0.60 percentage points on a three year fixed rate (up to 80 per cent LTV) from 5.49 per cent to 4.89 per cent and a cut of 0.40 percentage points for mortgages up to 85 per cent LTV from 6.19 per cent to 5.79 per cent. All deals come have a £999 application fee. Two other fixed rate deals are being reduced at the 75 per cent LTV tier and there will be a slight increase on the five year fixed for loans up to 70 per cent LTV.
Andy Gray, head of mortgages for Barclays, said: "The improvement to the highest loan to value products will be welcomed by those with smaller deposits, but who still need the certainty of a fixed rate giving a measure of protection from future base rate increases for those who need it most.”
All fixed rate mortgages revert to a lifetime tracker rate at base plus 2.49 per cent after the fixed rate period.
The tracker mortgage range will be maintained and currently includes deals such as base plus 2.19 per cent (up to 70 per cent LTV, £200k minimum loan) and base plus 2.69 per cent (up to 75 per cent LTV), giving consumers some of the strongest rates on the high street. The offset range for loans up to 70 per cent LTV also continues to be maintained at its present rates and a new 75 per cent LTV product at base plus 2.99 per cent is added.