From tomorrow (Tuesday 3rd September), Barclays is set to relaunch three purchase mortgage products, while adjusting rates across its residential purchase, remortgage, and reward product ranges.
The relaunch will include three key products: a 4.55% 2-year fixed-rate mortgage with an £899 product fee at 85% loan-to-value (LTV), a 4.05% 5-year fixed-rate mortgage with no product fee at 75% LTV, and a 4.17% 5-year fixed-rate mortgage with an £899 product fee at 85% LTV.
All three products will require a minimum loan amount of £5,000 and have a maximum loan limit of £2m.
In addition, Barclays is making several notable rate changes to its purchase products.
Its 5-year fixed-rate mortgage with an £899 product fee at 75% LTV, currently at 4.03%, will see a reduction to 3.95%.
Its 2-year fixed-rate mortgage with no product fee at 85% LTV will decrease from 4.95% to 4.75% and its 5-year fixed-rate mortgage with no product fee at 85% LTV will be reduced from 4.55% to 4.45%.
For remortgage products, Barclays is also implementing rate cuts.
The lender’s 5-year fixed-rate mortgage with a £999 product fee at 60% LTV will decrease from 4.06% to 3.93% and its 5-year fixed-rate mortgage with a £999 product fee at 75% LTV will drop from 4.20% to 4.07%.
Lastly, for the EMC Rate Switch products, a 5-year fixed-rate mortgage with no product fee at 60% LTV will see its rate reduced from 4.16% to 4.08%.
The bank’s 5-year fixed-rate mortgage with a £999 product fee at 75% LTV will also decrease from 4.20% to 4.07%.
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, said: “Monday started off busy with HSBC, NatWest, and Barclays all announcing rate reductions.
“Prior to today, competition among lenders had shown signs of easing slightly, as they looked to manage their pipelines and strike a balance between winning business and maintaining service levels.
“The Bank of England (BoE) is likely to hold rates this month, even as the Federal Reserve is expected to make a reduction.
“A close 5/4 split is anticipated as the committee closely monitors the effects of the previous cut. With inflation expected to remain slightly above their comfort level, the committee will likely adopt a wait-and-see approach, recognising that the impact of the previous reduction on inflation will not be immediate.
“While rates are projected to fall later this year to around 4.75%, a more significant reduction to 4% may not occur until 2025.
“Despite the likely hold this month, we can expect ongoing adjustments and a narrowing of fixed rates between purchase and remortgaging deals.
“Additionally, building societies and smaller high street lenders may decrease their rates as major lenders ease their competitive behaviour from recent weeks.”
