Barclays offering 5.44% fix to wealthier borrowers seeking £2 million+ mortgages

by Aaron Strutt

Oct 13 2022

Barclays for Intermediaries is currently offering its most competitively priced fixed rates to borrowers looking for larger mortgage loans. 

Barclays lowest fixed rate is priced at 5.44% and it is available for property purchases and remortgages between £2 million and £10 million. It is fixed until 30 November 2024, and applicants will need a 40% deposit to qualify.

After the fixed period, the mortgage reverts to 3.49% over the Bank of England base rate, and there is a £1,999 arrangement fee. 

Aaron Strutt, product director at Trinity Financial, says: “Signing up to a rate over 5% is not overly appealing but many fixed rates are over 6%. This Barclays rate is lower than many of the other lender's fixed rate options. If you want a cheaper deal, then you could opt for a discounted or tracker rate but they will rise if the base rate increases substantially.

"Barclays has a selection of fixed and tracker rate mortgages, and its rates are priced depending on the amount applicants want to borrow."

Why would you use a high street lender to secure a larger loan? 

Banks and building societies have targeted borrowers looking for larger mortgages with low rates and relatively cheap arrangement fees. The terms are consistently cheaper than the private banks, and borrowers do not need to move their banking or provide assets for them to manage. 

Is the large loan five-year fix much more expensive than the two-year rate?

If you prefer a five-year fix, the rate is currently 0.15% more expensive. Again, this is for mortgages between £2 million and £10 million.

Representative example: A capital and interest mortgage of £2,000,000 payable over 30 years, initially on a fixed rate basis until 30 November 2024 at 5.44% and then on a Bank of England base rate tracker (BoE plus 3.49%) currently 5.74% for the remaining 28 years, 5.44% would require 25 monthly repayments of £11,280.60 followed by 336 payments of £11,640.47. The total amount repayable would be £4,185,426.45 made up of the loan amount, plus interest (£2,181,573.51) and £1,999 (product fee), £80 (final repayment charge), £35 (completion fee). The overall cost for comparison is 5.6% APRC representative.   

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.  Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage  

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation