Barclays offering 4.45% two-year fix to wealthier borrowers seeking £2 million+ mortgages
Barclays for Intermediaries offers some of its most competitively priced fixed rates to borrowers looking for larger mortgage loans.
Barclays lowest fixed rate for larger loans is priced at 4.55%, and it is available for property purchase mortgages and remortgages between £2 million and £10 million. It is fixed until 30 June 2025; 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: "Mortgage rates have been getting more competitively priced for a few months now, and the lenders are targeting the £2 million+ borrowers again.
"Most borrowers expect the Bank of England base rate to come back down again next year, and that may well mean cheaper mortgage rates. As a result, more of our clients are taking two-year fixes or trackers without early repayment charges.
"While many borrowers do not want a take a higher rate for longer than necessary, they also want to buy properties and move up the property ladder."
Why would you use a high street lender to secure a larger loan?
Mortgage rates offered by the high street lenders tend to be much cheaper, and they are keen to provide larger mortgages, often to borrowers with complex finances.
Is the Barclays large loan five-year fix much more expensive than the two-year rate?
Barclays larger loan five-year fixed rate is currently 0.15% cheaper than its two-year fix. Again, this rate 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 June 2025 at 4.45% and then on a Bank of England base rate tracker (BoE plus 3.,49%) currently 7.74% for the remaining 28 years, 5.44% would require 25 monthly repayments of £10,074.38 followed by 335 payments of £14,086.43. The total amount repayable would be £4,974,793,.55 made up of the loan amount, plus interest (£2,970,812.74) and £1,999 (product fee), £80 (final repayment charge), £35 (completion fee). The overall cost for comparison is 7.4% APRC representative.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within this article was correct at the time of publication but is subject to change.
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