Barclays cuts fixed rates by 0.41pc

Nia Williams

August 22, 2011

The largest decrease has been made on Barclays’ Great Escape 2-year fixed rate product at 3.79% available at 75% loan to value which will be cut to 3.38%.

Cuts have also been made on 2-year and 3-year fixed rate mortgages at 80% and 85% LTV. Barclays’ 80% LTV, 2-year fixed rate which will be reduced from 3.59% to 3.38% for customers who qualify for a Barclays loyalty mortgage and 3.48% for all other customers. A reduction of 0.24% will be made from 4.13% to 3.89% on the 80% LTV, 3-year product.

At 85% LTV, the 3-year fixed rate will fall from 4.49% to 4.13%. Cuts will also take place on 5-year deals at 80% and 85% LTV, meaning the cheapest five year fix Barclays will have available will be at 4.39% at 80% LTV.

Other rate reductions include a 2 year fixed rate at 75% LTV, cut from 2.89% to 2.79% for customers who qualify for Barclays Loyalty mortgage and 2.87% for all other customers.

Andy Gray, head of mortgages at Barclays, said: “The mortgage market continues to be fiercely competitive which has been driven by falling swap rates.

“This is good news for borrowers as they have the opportunity to fix at a lower rate than they may currently be paying, to save them money now and protect them against future interest rate rises.

“We have also for the second time this month, made substantial cuts on higher LTVs, slashing around 0.80 percentage points off three and five deals. These changes give borrowers who have a smaller deposit access to even lower rates, making home ownership even more affordable, and helping those with existing mortgages to save money.

“Remortgaging has built momentum this year across the market and our latest Great Escape package is the best deal we’ve offered at 75% LTV since we launched these in the autumn of 2010.

“Thousands of borrowers with mortgages at this LTV can now fix well below their standard variable rate without having to pay any switching costs, making substantial savings to their monthly mortgage payments.”

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