Barclays cuts two-year fixed rates

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by Gill Montia

Barclays is lowering most of its two-year fixed rates from tomorrow.

Changes include a two-year Great Escape remortgage cut from 3.89% to 3.74% for 70% loan to value (LTV) and a reduction of 20 percentage points on its two-year fix at 60% LTV, reduced to 3.29%.

In addition the bank’s NewBuy rate and application fee are being cut and the rate on its three-year fix will fall from 6.09% to 5.89%, with a £500 reduction in the application fee, to £499.

Alongside these reductions, Barclays is adding to its range at 65% LTV for loans over £500,000 (available up to £2 million) with a two-year offset mortgage at base +2.49%, although the deal comes with a £1,999 application fee.

Barclay’s head of mortgages, Andy Gray, says: “We are starting to see a trend of more people looking to remortgage in light of recent increases to more than a million borrowers sitting on competitors’ SVRs”

He adds: “A borrower with a mortgage of £150,000, switching from a SVR of 4.79% to the Great Escape fixed at 3.74% could save more than £2,000 over two years if base rate continues to stay at 0.50%.”

The Great Escape mortgage allows borrowers to switch their mortgage to Barclays with no application fee, free legal work, free valuation and £300 cashback.