Barclays and Santander offering sub-4% fixed rate mortgages again
Barclays for Intermediaries and Santander for Intermediaries have launched sub-4% fixed-rate mortgages again providing welcome additional competition between the lenders.
Barclays offers a five-year fixed rate of 3.99% for borrowers purchasing a property. The mortgage has an £899 arrangement fee, and applicants will need a 40% deposit to qualify. The maximum loan size is £2 million.
Santander’s new sub-4% two- and five-year fixed rates are for borrowers either purchasing or remortgaging a property with a 40% deposit. The arrangement fee is £1,749 for remortgages, rising to £1,999 for those buying a property. The maximum loan size is £3 million.
Aaron Strutt, product director at Trinity Financial, says: “Both Santander and Barclays have been offering competitively priced rates for a while, but this latest Bank of England base rate cut seems to have helped them offer slightly better rates. Both lenders offer up to 5.5 times salary mortgages for higher earners and have good interest-only policies.”
Last week, Nationwide also improved the pricing on selected fixed rates by up to 0.35%. This includes rates across its new business and existing customers moving home products, as well as its rate switcher and additional borrowing ranges.
Barclays representative example: A capital and interest mortgage of £400,000 payable over 30 years, initially on a fixed rate basis at 3.99% until 03/06/2030 and then 1.99% over the Bank of England base rate currently 6.49% for the remaining 28 years. The 3.99% rate would require 63 monthly repayments of £1,430.52 followed by 297 payments of £1,826.77. The total amount repayable would be £633,813.45 made up of the loan amount, plus interest (£332,674.10) and £899 (product fee), £80 (final repayment charge), £35 (completion fee). The overall cost for comparison is 5.7% APRC representative.
How long are Barclays and Santander taking to produce mortgage offers?
Barclays for Intermediaries currently takes an average of 10 working days to produce residential mortgages and 21 days for buy-to-let mortgages. Santander for Intermediaries is taking six working days to produce a mortgage offer. Nationwide for Intermediaries currently takes two days to assess a case and eight days on average to produce a mortgage offer.
Call Trinity Financial on 020 7016 0790 to confirm how much you can borrow and the most competitively priced rates. You can also book a consultation or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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