Barclays has just announced a reduction to its Fixed Rate purchase deals, with some rates up to 0.39% cheaper at the higher Loan to Value pricing.
Newspage asked mortgage brokers for their thoughts on this announcement from Barclays, and whether other lenders will follow suit. This was a common strategy early in January as lenders moved purchase and remortgage rates in different directions.
Dariusz Karpowicz, director at Albion Financial Advice said, “Barclays’ decision to lower rates on its fixed-rate Purchase deals, particularly at higher loan-to-value levels, is a refreshing departure from the recent trend of rate hikes among mainstream lenders.
“While this reduction brings welcome news for potential homebuyers, I’m hesitant to anticipate a similar trend from other lenders amidst the current economic uncertainty.
“It’s certainly a breath of fresh air, but whether it will influence other lenders remains uncertain.”
Ben Perks, managing director at Orchard Financial Advisers said, “Barclays’ decision to lower rates on its fixed-rate Purchase deals, particularly at higher loan-to-value levels, is a refreshing departure from the recent trend of rate hikes among mainstream lenders.
“While this reduction brings welcome news for potential homebuyers, I’m hesitant to anticipate a similar trend from other lenders amidst the current economic uncertainty.
“It’s certainly a breath of fresh air, but whether it will influence other lenders remains uncertain.”
Justin Moy, managing director at EHF Mortgages said, “Barclays has made a surprising move with its purchase rates, mirroring a strategy adopted by many lenders back in January to stimulate the crucial home-moving market.
“Given the significance of this segment, I anticipate other High Street lenders following suit with similar changes to their products.
“However, we may see remortgage products increase to offset these discounted deals. Overall, it’s a positive move from Barclays that is likely to attract a lot of business in the short term.”
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