Barclays Looks to Free Customers From Their Lenders Standard Variable Rate with “The Great Escape” Remortgage Package

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Barclays is helping to liberate customers from standard variable rate mortgages with a specially designed “The Great Escape” remortgage package, launching Tuesday 19th October.

While base rate remains at 0.50 per cent, anybody delaying the decision to ditch SVR is paying more than they need to. With this new offer they retain the flexibility to switch to a fixed rate at any time should their expectations about base rate change, making this one of the most competitive packages on offer today.

Barclays is helping to liberate customers from standard variable rate mortgages with a specially designed “The Great Escape” remortgage package, launching Tuesday 19th October.

“The Great Escape” is aimed at borrowers who worry it would cost them too much to move to better rates elsewhere, there are an estimated 700,000* mortgages which are on lenders’ standard variable rates (SVRs). It provides these borrowers with a competitive, tracker mortgage at 2.18 per cent above base rate (2.68 per cent) at 70 per cent LTV, with no application fee, free legal work and valuation as well as £300 cash back to cover their existing lender’s exit fee.

Customers will also benefit from the peace of mind of “Switch & Fix” - available on all Woolwich tracker products – enabling borrowers to switch to a Woolwich fixed rate mortgage at any time without paying any early repayment charges. This feature has proved popular as it allows customers to benefit from a tracker rate while base rate is very low now, but with the security of being able to switch to a fixed rate should they become concerned about future interest rate rises.

Andy Gray, head of mortgages for Barclays, said: "We have built this package specifically to help the 700,000 families who feel trapped on their current lender’s SVR. We know many of the barriers that stop people who want to remortgage are simply down to cost. We believe the deal launched today will help stimulate the market as it cuts those costs out and provides an additional £300 cashback. With many SVRs at 3.5 per cent or more, customers could save £60 per month or over £700 annually on a £150k repayment mortgage. If their SVR is 4 per cent they will save over £1,200 annually.

“While base rate remains at 0.50 per cent, anybody delaying the decision to ditch SVR is paying more than they need to. With this new offer they retain the flexibility to switch to a fixed rate at any time should their expectations about base rate change, making this one of the most competitive packages on offer today.”

This follows on from Barclays hitting a milestone earlier this month when mortgage lending hit £100bn. This has been achieved by evolving and adapting the mortgage range to ensure borrowers' needs are met in the changing market place, providing long term value.

Customers looking for a great value remortgage are not restricted to “The Great Escape”. All customers switching their mortgage to Barclays from another provider can benefit from “Switch & Save” where Barclays pays the valuation and legal fees. “Switch & Save” also applies to Barclays loyalty mortgages, launched in August, offering better deals for Barclays current account customers.

Barclays closed its SVR to new customers in 2006. Since then, all customers move onto a competitive lifetime tracker when their initial deal comes to an end. As a result, Woolwich mortgages have less than three per cent of mortgage balances on standard variable rate. All of these customers are eligible to switch across to any other Woolwich mortgage deal at any point, and can also take advantage of “The Great Escape” or “Switch & Fix”.

Notes to Editors:
“The Great Escape” package does not cover a borrower’s existing early repayment charge.
*Source CACI for the estimated 700,000 mortgages which are on SVR.

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, life insurance, business loans 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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