- Home movers and first-time buyers with biggest deposits set to benefit most
Barclays is the latest bank to reduce home loan prices, slashing mortgage rates across various products this morning.
The lender announced a number of rate cuts aimed at first-time buyers, home movers and people remortgaging.
Barclays is now offering the lowest-priced five-year fix on the market for those buying with a deposit of 40 per cent or more.
The deal is available to both home movers and first-time buyers. The 3.71 per cent rate comes with a £899 product fee.
Someone securing this five-year fix on a £200,000 mortgage could expect to pay £1,024 a month if repaying over a 25-year term.
Yesterday, Nationwide cut its mortgage rates, launching five-year fixes starting from 3.74 per cent and three-year fixes from 3.89 per cent.
Mark Harris, chief executive of mortgage broker SPF Private Clients thinks the gradual reduction in interest rates by mortgage lenders will continue.
‘No sooner does one lender offer a sub-3.75 per cent five-year fix, then another joins the fray, with Barclays launching a market-leading 3.71 per cent,’ said Harris.
‘The clear direction of traffic for mortgage rates is downwards, with lenders gently easing pricing as they compete for business.
‘We don’t expect any dramatic reductions going forward but nevertheless, subtle improvements in rates will make life easier for borrowers.’
