Barclays Celebrate With Mortgage Rate Cuts

by Mark Johnston

The Woolwich, part of the Barclays group that offers a broad range of mortagges in the UK market has ramped up its mortgage lending over the last 3 years by nearly 50%.

This is a giant leap by the mortgage company since the industry average has been 3.5% over the same period. During this period, the bank has agreed almost £56 billion in home loans resulting in its mortgage portfolio bulging to £100 billion.

Mark Parsons, Barclays managing director of retail assets and deposits has suggested that they have seen a strong growth because the bank has identified changes in peoples needs and adapted their product range and offerings to suite.

He also attributed the success to the banks commitment to support homeowners and homebuyers in this difficult time and help them to achieve their dream of owning a home.

Mr Parsons said: “Barclays has remained open for business throughout the testing times of the last few years and that is reflected in these figures,”

Barclays have been celebrating this achievement by slashing its interest rates on one of its tracker mortgages by 0.41%. Following the cut, their 70 percent loan to value (LTV) mortgage is now priced at 2.08% plus base rate so with the Bank of England rate so low at 0.5%, borrowers would be expected to pay 2.58% so long as they had the 30 percent deposit. The 75 percent loan to value (LTV) was also cut to 2.39% plus the 0.5% base rate.

Barclays had already cut their rates recently on several of their fixed rate and tracker mortgages.

Their lowest rate mortgage is their two year tracker mortgage which is the Bank of England Base Rate (0.5%) plus 1.98% which means the initial interest rate would be 2.48%. The loan to value is 70% so someone looking to buy a £200,000 property would require a £60,000 deposit. The overall cost for comparison is 3.0% with an application fee of £999. 

Barclay’s offer a 85% loan to value option for those with smaller deposits. This is a 2 year fixed rate mortgage at 5.79%, the overall cost for comparison is 3.9% APR and it has a £999 fee. The best buy fixed rate mortgage is the 2 year fixed rate mortgage at 2.99%, this has a higher loan to value of 70 percent which requires a 30 percent deposit. Those looking for a longer term fixed rate so that they can be sure of what monthly payments they need to make could look at the 5 year fixed rate 4.49% mortgage which has a APR of 3.7% and a fee of £999. Loan to value is again 70% so those with small deposits should look elsewhere.

They also offer a lifetime tracker via their Woolwich brand which is advertised as 2.58% with a loan to value of 80% and a £1499 fee. They also have an 80 percent loan to value version for 3.88%, the overall cost for comparison is 4%.

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