The existing 90% LTV two and five year fixed rates have been reduced by 0.20% to offer new rates of 3.99% and 4.79% respectively.
To improve the options for customers looking for between 80 to 85% LTV Barclays is also launching a new 85% LTV five year fixed at 3.99%.
It has also reduced the rate on the 80% LTV Further Advance lifetime tracker by 0.50% and the 80% LTV large loan Lifetime Tracker by 0.76% meaning both products now offer a competitive rate of 3.99%.
‘We are delighted to announce a number of rate cuts that will benefit first time buyers and those with smaller deposits looking to get on or move up the property ladder. The addition of a new five year fixed rate at 85% will give customers the option of longer term stability and protecting them from future base rate rises,’ said Andy Gray, managing director of mortgages at Barclays.
‘We believe that by simplifying our range and aligning the follow-on rates for all our mortgage products with a competitive rate of 3.99%, Barclays can offer much better value for customers over the long term when considering most lenders move customers onto an SVR (Standard Variable rate) with an average rate of 4.4%,’ he added.
Following new guidelines from the Financial Policy Committee on affordability testing, with effect from Tuesday 19 August, the affordability rate on residential applications will be 6.99% while the affordability rate for Family Springboard and Help to Buy: mortgage guarantee applications will remain at 7.24%.
