Barclays cuts rates and launches sub-4% Premier tracker

Barclays will cut selected mortgage rates from Thursday 30 April and launch a Premier two-year tracker below 4%.

The lender said the new residential purchase-only product will be available at 3.96% up to 75% LTV, with a £999 product fee, a minimum loan of £5,000 and a maximum loan of £2 million.

Barclays said it believes it is the first lender to offer a product below 4% in the current market.

To qualify for the Premier range, customers must hold a Barclays current account and either pay in a gross annual income of £75,000, or hold at least £100,000 in savings, eligible investments, or a combination of both with the bank.

Barclays is also launching a Premier five-year fixed rate for purchase at 4.93% up to 80% LTV, with no product fee, a minimum loan of £5,000 and a maximum loan of £2 million.

For remortgage customers, the lender will introduce a Premier two-year fixed rate at 5.08% up to 80% LTV, with a £999 product fee, and a Premier five-year fixed rate at 4.80% up to 60% LTV, also with a £999 fee. Both have a minimum loan of £5,000 and a maximum loan of £2 million.

SELECTED EXISTING RATES REDUCED

Among purchase-only products, Barclays will reduce its Premier two-year fixed rate at 75% LTV from 4.73% to 4.71%. The product has an £899 fee and is available on loans from £5,000 to £2 million.

Its three-year fixed rate at 75% LTV, also with an £899 fee, will fall from 5.10% to 5.05%, while the Premier five-year fixed rate at 90% LTV will reduce from 5.01% to 4.94%. The latter has a maximum loan size of £640,000.

For remortgage customers, Barclays will cut its three-year fixed rate at 60% LTV from 4.95% to 4.90%, and its 75% LTV equivalent from 5.06% to 5.01%. Both carry a £999 product fee.

The lender will also reduce its five-year fixed rate at 60% LTV from 5.01% to 4.83%, and its 75% LTV version from 5.04% to 4.91%. Both are remortgage-only products with a £999 fee.

Barclays’ Great Escape five-year fixed remortgage product at 60% LTV, with no product fee, will fall from 5.20% to 5.01%. The 75% LTV version will reduce from 5.23% to 5.07%. Both have a minimum loan of £50,000 and a maximum loan of £2 million.

The lender said it would also make a limited number of rate increases as part of the changes.