Barclays lowers fixed rates but increases trackers

by Aaron Strutt

Sep 30 2011

Barclays has lowered the price of a number of their fixed rates but increased the cost of their tracker mortgages by up to 0.5%.

The lender is cutting the price of its fixed rates mortgages by an average of 0.14% and these rates are now more competitive, but not quite market leading. Their two-year fixes start at 2.58% and five-year fixes from 3.64%.

Aaron Strutt, a broker at Trinity Financial, says: “Some banks seem to be increasing their tracker rates at the moment. This generally happens for one of two reasons, either they are trying to manage demand or the cost of funding has gone up.

“Many of the building societies still offer the lowest mortgages. Skipton Building Society has a two-year fixed rate at 2.68% for borrowers with a 40% deposit and there is a £995 arrangement fee. Also, Nationwide has a great three-year fix at 2.89% with a £999 arrangement fee - if you have a 30% deposit.”

September 30, 2011