Barclays is reducing mortgage rates by up to 70 basis points and launching new remortgage offers designed to help over 3.1 million borrowers save money on their mortgage.
The Great Escape remortgage range is expanded with a new option specifically for loans between £50,000 and £100,000, fixed for five years at 3.19% and available up to 60% loan to value (LTV).
A further new five year fixed rate offers homeowners with a minimum £100,000 borrowing a rate of 3.99% and is available up to 80% LTV, while the two year option at the same LTV is cut by 15 percentage points from 3.74% to 3.59%.
All Great Escape mortgages come with no legal or valuation fees and cashback of £250.
Meanwhile, the Family Springboard mortgage benefits from a rate cut of 70 percentage points from 4.69% to 3.99%. Family Springboard allows relatives to use their savings to help first time buyers get a mortgage by holding 10% of the purchase price in a Helpful Start savings account, which means the homebuyer can be offered a 95% LTV mortgage. After three years the savings are released with interest, providing that the mortgage repayments have been kept up to date.
For homebuyers looking at larger loans, Barclays has relaunched its mass affluent range, offering a two year fixed rate at 1.99%, an offset mortgage at base plus 1.99% (currently 2.49%), or a five year fixed rate at 2.78%. These rates are all available for loans between £500,000 and £2m up to 65% LTV and with a fee of £1,999.
Further cuts are also made to fixed rate mortgages, with the two year fixed rate now available at 2.95%, down 18 percentage points from 3.13% at 80% LTV. Three year fixed rates have been cut by 20 percentage points, down from 2.75% to 2.55% at 70% LTV and 3.59% to 3.39% at 80% LTV.
Andy Gray, managing director of mortgages for Barclays, said: “We recognise the challenges facing first time buyers and remortgagers in particular, which is why we have focussed on making the biggest changes in these areas. Our Great Escape mortgage has already helped thousands of homeowners who thought they were trapped with their old mortgage lender move to a better deal.
“With the new lower loan size option we are opening up the escape route to even more borrowers and helping them save money every month.”