New super-low rates for mortgages between £1 million and £5 million
Barclays for Intermediaries has lowered the price of its already impressively low mortgages between £1 million and £5 million.
The banks latest two-year tracker is available for mortgages up to £2 million, and it is priced at 0.99% - which is 0.74% over the Barclays Bank base rate (BBBR).
At the end of the tracker period, the mortgage reverts 3.74% which is the BBBR plus 3.49%. The overall cost for comparison is 3.33% APRC representative.
Barclays 0.99% rate has a £1,999 arrangement fee, and applicants will need a 40% deposit to qualify. There are no any early repayment charges.
For mortgages between £2 million and £5 million, Barclays tracker rate rises to 1.19% which is 0.94% over the BBBR. It reverts to the same 3.74% variable rate and applicants will need a 40% deposit to qualify. The overall cost for comparison is 3.36% APRC representative.
The arrangement fee rises to £2,499 and 1% early repayment charges apply for two years. Please note, these tracker rates will not reduce if the Bank of England base rate is lowered as there is a product floor.
Aaron Strutt, product director at Trinity Financial, says: “Over the last few years the high street lenders have started offering incredibly cheap large mortgage loans. Many of them have setup specialist underwriting teams to ensure they can process these applications more efficiently.
“Barclays mortgages are available on an interest-only basis up to 75% loan-to-value and the sale of the property is regularly used as a stated repayment vehicle.
Representative example for 0.99% rate: A mortgage of £2,000,000 payable over 25 years, initially on a tracker rate for two years at 0.99% and then on a variable rate of 3.74% for the remaining 23 years, would require 24 monthly repayments of £7,528.40 followed by 276 monthly repayments of £10,044.89. The total amount repayable would be £2,957,961.24 made up of the loan amount, plus interest (£953,071.24) and fees of £1,999. The overall cost for comparison is 3.33% APRC representative.
Representative example for 1.19% rate: A mortgage of £4,000,000 payable over 25 years, initially on tracker rate for two years at 1.19% and then on a variable rate of 3.74% for the remaining 23 years, would require 24 monthly repayments of £15,421.42 followed by 276 monthly repayments of £20,126.46. The total amount repayable would be £5,929,507.04 made up of the loan amount, plus interest (£1,925,017.04) and fees of £2,499. The overall cost for comparison is 3.36% APRC representative.
Call Trinity Financial on 020 7016 0790 for help to secure a larger mortgage loan.
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