Barclays offering 5.32% five-year fix for mortgages up to £2 million

by Aaron Strutt

Jul 31 2023

Barclays for Intermediaries is offering a range of fixed rates mortgages undercutting many of its competitors. 

Barclays lowest five-year fixed rate is priced at 5.32%, and it is available for mortgages between £5,000 and £2 million. It is fixed until 30 September 2028 and applicants will need a 40% deposit to qualify although the 25% deposit rate is only 0.02% more expensive.

After the fixed period, the mortgage reverts to 3.49% over the Bank of England base rate, and there is a £899 arrangement fee. 

Aaron Strutt, product director at Trinity Financial, says: "Mortgage lenders have started to lower their rates and they are looking better than they were. Barclays is offering some competitively priced rates at the moment when compared to lenders like NatWest and Santander.

"Two-year fixes are still typically more expensive than five or ten-year fixes deal although many of our clients are taking shorter-term rates with the expectation that rates will come down over to next year or two."

The Bank of England Monetary Policy Committee is still likely to increase the base rates again on Thursday. 

Figures from Uswitch show the average mortgage rates across the big six lenders*:

*Nationwide, Santander, HSBC, Halifax, Barclays Bank, NatWest, and Lloyds Bank.

Representative example: A capital and interest mortgage of £400,000 payable over 30 years, initially on a fixed rate basis until 30 September 2028 at 5.32% and then on a Bank of England base rate tracker (BoE plus 3.49%) currently 8.49% for the remaining 25 years, 5.32% would require 61 monthly repayments of £2,226.19 followed by 299 payments of £2,966.53. The total amount repayable would be £1,023,730.06 made up of the loan amount, plus interest (£622,789.93) and £699 (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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