Mortgage wars: Barclays takes a ‘bold step’ offering a record low rate of 3.84%

Barclays has this morning announced that, from tomorrow, Thursday 8 August, it is changing rates on a selection of products across its Residential Purchase, Remortgage and Reward ranges.

Notably, its 5-year fixed at 60% LTV has been reduced to 3.84%.

• 4.04% 5 Year Fixed  £899 product fee, 60% LTV, Min loan £5k, Max loan £2m, will decrease to 3.84%
• 4.61% 2 Year Fixed  £0 product fee, 60% LTV, Min loan £5k, Max loan £2m, will decrease to 4.43%
• 4.42% 2 Year Fixed  £899 product fee, 60% LTV, Min loan £5k, Max loan £2m, will decrease to 4.22%.

Key Remortgage product change highlights include:

• 4.26% 5 Yr Fixed  £999 product fee, 60% LTV, Min loan £5k, Max loan £2m, will decrease to 4.06%
• 4.40% 5 Yr Fixed  £999 product fee, 75% LTV, Min loan £5k, Max loan £2m, will decrease to 4.20%
• 4.60% 2 Yr Fixed  £999 product fee, 60% LTV, Min loan £5k, Max loan £2m, will decrease to 4.40%.

Stephen Perkins, managing director at Yellow Brick Mortgages said, “Barclays have made a real statement of intent here. It’s game on in the mortgage market now. More lenders going sub-4% is greatly welcomed.

“The hope now is that these competitive rates will filter up the loan-to-value brackets to help more borrowers.”

Ranald Mitchell, director at Charwin Mortgages said, “Barclays’ move to cut mortgage rates to sub-4% is a breath of fresh air for borrowers and a welcome boost for the property market.

“This bold step is sure to ignite interest among prospective buyers who have been sitting on the fence, waiting for better rates. With Barclays setting the pace, other lenders will now feel the heat to follow suit, cranking up the competition.

“It looks like mortgage product teams across the industry might have to swap their summer holidays for strategy sessions. This is a win for consumers and a lively shake-up for the market.”

Simon Bridgland, director at Release Freedom said, “So this is the point in the week when all the big guns of the mortgage lending world grit their teeth and snarl at one another, all vying for top spot with sub-4% deals for the lowest of loan-to-value borrowers.

“Who will come out on top by the end of the week could be a surprise, as good deals usually creep out amongst other smaller lenders as the week progresses. Will a Samson appear to slay one of the lending goliaths? It wouldn’t surprise me.”