Barclays offering seven-year fixed rate mortgage at 3.39%
Barclays for Intermediaries offers one of the most competitively priced longer-term fixed-rate mortgages priced at 3.39%.
Most borrowers opt for two, three, five or even ten-year fixes, and they do not consider seven-year rates. Now that mortgages are getting more expensive, seven-year rates are a decent option, especially if you plan to stay in your home for the foreseeable future.
What are the details of Barclays seven-year fix?
Barclays lowest longer-term rate is 3.39%, and it is available for property purchases and remortgages. It is fixed until 30 November 2029, and applicants will need a 40% deposit to qualify. The maximum loan is £2 million and 3% early repayment charges apply.
After the fixed period, the mortgage reverts to 3.49% over the Bank of England base rate (currently 1.25%), and there is a £999 arrangement fee.
Aaron Strutt, product director at Trinity Financial, says: “If you are worried about future base rate rises and would rather lock into a longer-term fix, then the Barclays product may be a good option for you. This rate was 2.26% back in May so it has increased in recent months.
“If you take a longer-term fix, it is important to understand how much it will cost to get out of the loan. Early repayment charges can be expensive.”
Representative example: A capital and interest mortgage of £500,000 payable over 30 years, initially on a fixed rate basis until 30 November 2029 at 3.39% and then on a Bank of England base rate tracker (BoE plus 3.49%) currently 4.24% for the remaining 28 years, 3.39% would require 87 monthly repayments of £2,214.63 followed by 273 payments of £2,523.08. The total amount repayable would be £881,473.65 made up of the loan amount, plus interest (£381,474.48) and £999 (product fee), £80 (final repayment charge), £35 (completion fee). The overall cost for comparison is 4.2% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration. Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
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