As mortgage rates below 4% return to the market, Barclays has introduced new deals for eligible borrowers. The move is believed to be the first fixed-rate product of its kind currently available.
From today, the lender is offering a range of new purchase-only products, including a two-year tracker starting at 3.96% for Premier customers. Deals are available at 75% loan-to-value, meaning borrowers will need at least a 25% deposit.
Access to the lowest rates is restricted to Barclays Premier customers, who must have a current account with the bank and a gross annual income of either £75,000 or £100,000 from savings or investments or a combination of the two.
The launch marks the return of sub-4% pricing to the mortgage market, albeit on a restricted basis. This raises the question whether other lenders will make similar cuts if market conditions permit.
John Charcoal’s Nicholas Mendes commented: “We may still see selective mortgage rate cuts where individual lenders want to compete, or where swap rates are easier to access. But I expect any cuts to be modest rather than causing widespread changes across the entire market.”
As well as the tracker product, Barclays has also introduced a five-year fixed rate at 4.93% for purchases at 80% LTV with no fees. For remortgaging customers, the new deals include a two-year fixed rate at 5.08% and a five-year fixed rate at 4.80%, based on loan-to-value and excise duty structure.
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