Barclays offering 1.49% fix for mortgages between £1 million and £3-million
Barclays for Intermediaries has lowered the price of its large loan fixed rate mortgages and introduced a free basic valuation for properties valued up to £2 million.
The bank reduced its most competitively priced large loan two-year fix from 1.85% to 1.49% for mortgages between £1-million and £3 million.
After the fixed rate expires on 31 October 2019, the mortgage will revert to 3.74% - which is 3.49% over the BBBR. The overall cost for comparison is 2.5% APRC.
Aaron Strutt, product director at Trinity Financial, says: “Barclays has been offering decent large mortgage loans for some time but not all of its rates are getting better, the bank actually increased the price of its large loan tracker rate by 0.27%.”
The 1.49% rate has a £1,999 arrangement fee and 3% early repayment charges until 31 October 2019. Applicants will need a 35% deposit to qualify and 10% overpayments can be made each year without charge.
Monthly repayments and interest-only
The monthly repayments on a £1.25 million mortgage priced at 1.49% will be £4,993 over a 25-year term. They reduce to £1,552 on an interest-only basis.
Barclays offers part interest-only and part capital repayment mortgages to help lower the costs. This is available up to 75% loan-to-value with a maximum of 50% loan-to-value on interest-only.
Clients will need a minimum income of £75,000 gross annual income to qualify, or £100,000 for a joint application where no individual earns in excess of £75,000. After the interest-only element, clients will need £300,000 equity in the property.
Remortgage incentives
If you have a larger mortgage and you are looking to remortgage to secure a lower rate or borrow more money for home improvements, Barclays offers a “switch and save” scheme where it will pay for the property valuation and legal fees to reduce the cost of switching lenders.
If you are buying a property, Barclays will provide a free basic valuation providing it is valued up to £2 million.
To secure a larger fixed or tracker rate mortgage, call Trinity on 020 016 0790.
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