Barclays reduces tracker and fixed rates again

Barclays’ 2-year fixed rate mortgage, available up to 70% LTV, will be cut by 0.20% from 2.98% to 2.78%. The 2-year fixed rate Great Escape remortgage package, available up to 70% LTV, will also be reduced from 3.74% to 3.49%, a cut of 0.25%. The biggest cuts will take place on the longer term 5-year fixed rate products available up to 80% LTV with reductions by 0.30% from 5.28% to 4.98%.

Two 2-year tracker mortgages are also being launched. A 70% LTV with an application fee of £999 will be available at 1.79% above base rate and a 75% LTV 2-year tracker will be available at 1.99% above base rate. Both revert to a standard tracker rate of 2.99% above base rate after the two years. Barclays have confirmed that all of the Woolwich tracker mortgages come with “Switch and Fix” which allows borrowers to switch to any current Woolwich fixed-rate mortgage deal with no early repayment charge.

Andy Gray, head of mortgages at Barclays, said: “These numbers demonstrate the determination of the Merlin banks to lend to viable businesses - it has been a solid start to the year.

"With further falls to swap rates this month and the economic turmoil in Greece impacting rates, we are able to pass on cuts to borrowers across our mortgage range. We have introduced a competitive two-year tracker to offer value in the market for those who are happy to see what happens to rates. With Switch and Fix, this gives borrowers the best of both worlds, a cheap tracker with the ability to fix when the time is right for them.”

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