Barclays has launched new and reduced mortgage rates by up to 0.20 percentage points for high LTV borrowers.
Its existing 90% LTV two and five-year fixed rates have been reduced by 0.20 percentage points to offer new rates of 3.99% and 4.79% respectively. To improve the options for customers looking for between 80%–85% LTV Barclays is also launching a new 85% LTV five-year fixed at 3.99%.
It has also cut the rate on the 80% LTV Further Advance lifetime tracker by 0.50 percentage points and the 80% LTV large loan Lifetime Tracker by 0.76 percentage points meaning both products now offer a rate of 3.99%.
Andy Gray, managing director of mortgages at Barclays, said: “We are delighted to announce a number of rate cuts that will benefit first time buyers and those with smaller deposits looking to get on or move up the property ladder. The addition of a new five year fixed rate at 85%, will give customers the option of longer term stability and protecting them from future base rate rises.
“We believe that by simplifying our range and aligning the follow-on rates for all our mortgage products with a competitive rate of 3.99% (BBBR+3.49%), Barclays can offer much better value for customers over the long term when considering most lenders move customers onto an SVR (Standard Variable rate) with an average rate of 4.4% (CML July 2014).”
Barclays said that following new guidelines from the Financial Policy Committee on affordability testing, with effect from 19 August, the affordability rate on residential applications will be 6.99%. The affordability rate for Family Springboard and Help to Buy: mortgage guarantee applications will remain at 7.24%.