Barclays lower mortgage rates and launch 4.08% five-year fix
The mortgage market has been much more positive in recent weeks following a host of rate reductions and better economic news.
Barclays for Intermediaries is the latest mortgage lender to lower rates by up to 0.33%. The bank has launched a 4.08% five-year fix and a sub 4.5% two-year fix, both with £899 arrangement fees.
These mortgages are available to Barclays premier customers who are purchasing a property. Applicants will need a clear credit history, an income of at least £75,000 and a 40% deposit to qualify. The minimum loan size is £5,000, and the maximum is £2,000,000. Rates are only up to 0.03% higher for non-premier customers.
Nationwide, Halifax, Santander and NatWest are just some of the other big banks and building societies to improve their mortgage pricing as we edge closer to a Bank of England base rate cut. HSBC has also increased its maximum loan sizes for borrowers with all deposit sizes.
Aaron Strutt, product director at Trinity Financial, says: "It seems like we are heading towards getting a sub-4% five-year fix again. The lenders have been doing more to get mortgage business over the last few weeks, especially as we go into the second half of the year and they have their lending targets to hit.
"There is not a huge difference between many of the lowest rates the lenders offer, although Barclays has gone one step further than the rest with its latest fixed rates. Other lenders may well match them over the coming days."
Representative example: A capital and interest mortgage of £400,000 payable over 30 years, initially on a fixed rate basis at 4.08% until 30/09/2029 and then on the lender's 8.74% standard variable rate for the remaining 25 years. The 4.08% rate would require 61 monthly repayments of £1,928.16 followed by 299 payments of £2,972.85. The total amount repayable would be £1,007,639.91 made up of the loan amount, plus interest £606,498.58) and £899 (product fee), £80 (final repayment charge), £35 (completion fee). The overall cost for comparison is 7.1% APRC representative.
How many borrowers are taking two or five-year fixes?
Figures from UK Finance show that during April, the number of borrowers opting for two- and five-year fixes was almost the same, with 44% taking a two-year fix and 45% opting for a five-year fix.
Jonathan Haskel, a member of the Bank's Monetary Policy Committee, was quoted as saying he "would rather hold rates" at 5.25% until there is more certainty that inflation pressures had "subsided sustainably". This is despite the Bank of England base rate being at a 16-year high and some 732,000 mortgage deals ending in the second half of this year.
Call Trinity Financial on 020 7016 0790 to secure a mortgage, 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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