Barclays responds to “highly competitive” mortgage market

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by Gill Montia

Barclays is lowering some of its mortgage rates by up to 0.3% from today and introducing a five-year fixed-rate deal at 4.89% for those with a deposit or equity of 15%.

Key reductions include a drop of 0.3% on the lenders’ Future Fix mortgage for borrowers with a 30% deposit or equity.

The deal provides a tracker and a three-year fixed-rate starting in two years’ time – the tracker element is reducing to base +2.49% for two years, while the three-year fixed-rate remains at 3.99%. The loan comes with a £999 application fee.

Alongside this, Barclays’ two-year fixed-rate mortgage for borrowers with a 40% deposit is reducing from 3.09% to 2.89%.

The loan comes with a £999 application fee or £499 for customers who qualify for a Barclays loyalty mortgage.

Andy Gray, head of mortgages at Barclays says: “This is the second time in less than a month that we have made cuts to our mortgages and is due to a highly competitive market with lenders making several reductions in the last few weeks.”