Barclays unveils further mortgage rate cuts, including lowest of the year

Barclays is cutting mortgage rates once again, with a new tranche of reductions coming into effect from tomorrow (Tuesday 13 May).

The news include a series of adjustments across both its residential and existing customer ranges, as well as what it describes as its lowest rate of the year so far.

The high street bank confirmed that its fee-free Great Escape two-year fixed remortgage product will fall by 19 basis points to 4.18%, which it claims is a market-leading rate for a no-fee remortgage. In addition, the lender is introducing a new two-year fixed rate at 3.85% for existing mortgage customers — the most competitive deal it has launched this year.

Purchase customers will also benefit from reductions of up to 9 basis points across a range of two and five-year fixed deals. Notable changes include the two-year fixed at 60% loan-to-value with a £899 fee, which will drop from 3.92% to 3.87%, and the fee-free version of the same product which will fall from 4.18% to 4.10%.

GREEN DEALS

Green home mortgages are also being repriced, with the two-year fixed at 60% LTV and no product fee falling to 4.00%, down from 4.08%. The five-year fixed green product at 60% LTV with a £899 fee will now be available at 3.79%, down from 3.83%.

For remortgage customers, reductions are also being made to both fee-paying and fee-free options. The Premier two-year fixed at 60% LTV with a £999 product fee will be lowered from 3.95% to 3.87%, while the standard version with the same fee and LTV will fall to 3.88%.

The lender’s Great Escape remortgage deal, which includes no product fee and is aimed at customers looking to switch lenders without incurring high costs, will now be priced at 4.18%, down from 4.37%.

EXISTING CUSTOMERS

Barclays has also confirmed significant cuts to its Existing Mortgage Customer (EMC) Reward range. The new headline rate in this segment will be the two-year fixed at 3.85% with a £999 fee at 60% LTV, a 10 basis point reduction. Fee-free alternatives are also being repriced, with the two-year fixed at 60% LTV falling from 4.30% to 4.06%.

Longer-term EMC Reward products are being cut too, with the five-year fixed at 60% LTV and £999 fee moving to 3.86%, and the equivalent fee-free product dropping to 3.99%. A similar reduction will be made to 75% LTV products, with the five-year fixed falling to 3.99% and 4.08% for the fee and fee-free options respectively.