Barclays Cuts Rates on its Highest Loan to Value Fixed Rates by up to 0.70 Percentage Points

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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.

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.

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.

Fixed Rates
Term    LTV    Old Rate    New Rate    Change    Old Fee    New Fee    Change
2    70%    3.29%    3.29%    No change    £1,999         
2    70%    3.49%    3.49%    No change    £999         
2    70%    3.79%    3.79%    No change    £499    £199    -£300
2    75%    3.69%    3.59%    -0.10%    £999         
2    75%    4.09%    3.99%    -0.10%    £499    £199    -£300
2    80%    5.29%    4.59%    -0.70%    £999         
3    70%    4.09%    4.09%    No change    £999         
3    70%    4.39%    4.39%    No change    £499    £199    -£300
3    80%    5.49%    4.89%    -0.60%    £999         
3    85%    6.19%    5.79%    -0.40%    £999         
5    70%    4.44%    4.67%    +0.23%    £999         
5    80%    5.49%    5.49%    No change    £999

Tracker Rates
Term    LTV    Old Rate    New Rate    Change    Fee
Life    70%    2.19%    2.19%    No change    £1,499
Life    70%    2.39%    2.39%    No change    £999
Life    70%    2.69%    2.69%    No change    £0
Life    75%    2.69%    2.69%    No change    £999
Life    75%    2.99%    2.99%    No change    £0

Offset Rates
Term    LTV    Old Rate    New Rate    Change    Fee
Life    70%    2.39%    2.39%    No change    £1,499
Life    70%    2.59%    2.59%    No change    £999
Life    75%         2.99%    New    £999

Barclays is a major global financial services provider engaged in retail banking (current accounts and savings accounts), credit cards, corporate banking, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 140,000 people. Barclays moves, invests and protects money and provides personal loans, home insurance, life insurance and other services for over 49 million customers and clients worldwide. For further information about Barclays, please visit our website http://www.barclays.co.uk.

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Emma Austin
Barclays
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