Barclays is launching a new first-time buyer product on Monday 14 January.
Mortgage rates will also be cut by up to one percentage point.
he new Family Springboard mortgage provides first time buyers with a three-year fixed rate available with a 5% deposit at 4.69%, whilst their family opens a savings account linked to the mortgage into which they put 10% of the purchase price. When the three year fixed rate ends the savings are returned to the family.
There will be a three year fixed rate deal for those with a 30% deposit at 2.89%. The two and five-year fixed rates Barclays will be offering are priced at 2.39% and 3.39%, for those with a 40% and 30% deposit respectively.
Cuts are also being made on the Great Escape remortgage package for those borrowers whose monthly payments were hit by competitors increasing their Standard Variable Rate (SVR) last year. They can remortgage onto Barclays’ cheapest ever two year fixed rate deal where the rate has been cut from 3.49% to 2.99%.
Andy Gray, managing director of mortgages for Barclays, said: “This is a real boost for UK homebuyers with small or large deposits as we are giving them access to the cheapest ever deals we’ve been able to offer, brought about by the combination of the low base rate and funding for lending scheme.
“We’ve listened to our customers and need to continue to drive confidence in the housing market, the new family scheme and today’s slashed rates will encourage people to think about buying or moving home, which in turn will help the economy move forward. For existing homeowners this is extra good news as they can still look to reduce their monthly outgoings by switching to cheaper rates.”
New products:
| Term | LTV | Old Rate | New Rate | Change | Fee |
| Family Springboard 3 year fixed | 95% | NEW | 4.69% | NEW | £499 (loyalty £0 fee) |
| 2 year fixed | 60% | 2.69% | 2.39% | -0.30% | £999 (loyalty £499) |
| 2 year fixed | 70% | 2.89% | 2.59% | -0.30% | £999 (loyalty £499) |
| 2 year fixed | 75% | NEW | 2.98% | NEW | £999 (Loyalty £499) |
| 2 year fixed | 80% | 3.69% | 3.49% | -0.20% | £999 (loyalty £499) |
| 3 year fixed | 70% | 3.89% | 2.89% | -1.00% | £499 |
| 3 year fixed | 80% | 3.99% | 3.79% | -0.20% | £499 |
| 5 year fixed | 70% | 3.99% | 3.39% | -0.60% | £999 (loyalty £499) |
| 5 year fixed | 80% | 4.29% | 3.99% | -0.30% | £999 (loyalty £499) |
| 2 year great escape | 70% | 3.49% | 2.99% | -0.50% | £0 |
| 2 year tracker | 70% | Base+ 2.49% | Base +1.89% | -0.60% | £999 (loyalty £499) |
| Future Fix | 70% | 2 year tracker base +2.49% followed by 3 year fixed at 3.99% | 2 year tracker base +1.89%, followed by 3 year fixed at 3.39% | -0.60% | £999 |
| Future Fix | 80% | Tracker base +2.99%, followed by 3 year fixed at 4.29% | Tracker base +2.99%, followed by 3 year fixed at 3.99% | Fixed element changing by 0.30% | £999 |
| NewBuy 4 year fixed | 95% | NEW | 4.89% | NEW | £499
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