Highlights include a cut of 0.11% on the two year fixed rate at 80% LTV, from 3.59% to 3.48% and the launch of a new product, combining a tracker and fixed rate.
Barclays says that its ‘Future Fix' is an innovative new mortgage product combining the flexibility of a base rate tracker with the security of a fixed rate follow on rate, designed to give borrowers the best of both worlds.
Available at up to 70% LTV with a five year term, Future Fix gives borrowers the benefit of a tracker rate for the first two years, taking advantage of predicted low base rates (base +2.99%), followed by the security of a fixed rate for the next three years at 4.29%. It means customers can be certain of their mortgage payments beyond the next two years. A £1,299 application fee applies.
Elsewhere, other changes include the extension from 60 to 70% LTV of the three year fixed rate at 3.69% and five year fixed at 4.29%. For borrowers who are borrowing more than £250,000, a new two year fixed rate at 2.84% and a two year offset at base plus 2.49% are also available.
On buy to let mortgages the application fee structure is changing. For mortgages up to £500,000 the fee will be set at £1,999 and for mortgages over £500,000 the fee will be £3,999.
‘These changes reinforce our commitment to the mortgage market and to giving customers choice and value, with an innovative option. Future Fix gives borrowers the best of both worlds, especially for those who may have been put off by trackers previously, as it offers a really good compromise, tracking whilst rates are low now and also fixing at today's historically low prices for two years time,’ said Andy Gray, head of mortgages at Barclays.
The Future Fix follows the launch of Switch and Fix in 2010, which allows variable rate borrowers to switch with no early repayment charge to any fixed rate mortgage deal available at the time of switching. The Future Fix has the added certainty of locking into a low fixed rate now for the future, added Barclays.
All residential mortgages revert to a lifetime tracker of base plus 3.39%. The remainder of Barclay’s fixed, tracker and offset range is maintained.
