Barclays offers new leading mortgage rate at 3.84% in ‘real statement to market’ | Personal Finance | Finance
Barclays has reduced mortgage rates on a wide range of products in a ‘bold step’ to restore confidence in the property market.
Starting today, borrowers can benefit from these new lower rates across the bank’s Residential Purchase, Remortgage, and Reward ranges, with some deals now falling below four percent.
Barclays’ best five-year rate for Premier customers with a 40 percent deposit has decreased from 4.03 percent to 3.83 percent.
For other customers, the best rate has been reduced from 4.04 percent to 3.84 percent. Both deals have an £899 fee.
The lender has cut rates on 34 deals in total, with most seeing reductions of around 0.2 percent.
The move follows the Bank of England’s first Base Rate cut in four years, with members of the Monetary Policy Committee voting for a 0.25 percent reduction to five percent.
Stephen Perkins, managing director at Yellow Brick Mortgages commented: “Barclays have made a real statement of intent here. It’s game on in the mortgage market now. More lenders going sub-four percent is greatly welcomed. The hope now is that these competitive rates will filter up the loan-to-value brackets to help more borrowers.”
Ranald Mitchell, director at Charwin Mortgages commented: “Barclays’ move to cut mortgage rates to sub-four percent is a breath of fresh air for borrowers and a welcome boost for the property market.
“This bold step is sure to ignite interest among prospective buyers who have been sitting on the fence, waiting for better rates. With Barclays setting the pace, other lenders will now feel the heat to follow suit, cranking up the competition. It looks like mortgage product teams across the industry might have to swap their summer holidays for strategy sessions. This is a win for consumers and a lively shake-up for the market.”
Riz Malik, director at R3 Mortgages commented: “This post-base rate cut bonanza from Barclays will help drive confidence among borrowers and in the UK housing market. These are some decent cuts but they probably won’t be the last.”
Ben Perks, managing director at Orchard Financial Advisers commented: “Barclays has breached the four percent barrier and it’s brilliant to see. But now that they are armed with attractive lower rates, will their servicing be up to the task? Either way, the sub-four percent competition is hotting up and, as other lenders join the fray, borrowers will start to rejoice.”
HSBC has also announced a new series of rate cuts, including a deal with a rate below four percent.
HSBC’s best five-year fixed rate is now 3.92 percent, available exclusively to Premier banking customers with a deposit of at least 40 percent. This option includes a £1,499 fee. For standard customers, the best rate is 3.95 percent with a £999 fee.
