Barclays launches lowest 5-year fix amid rate changes

The lender today announced significant reductions to itsmortgage rates – including reducing the rate on its Green Home five-year fixed rate (with £899 product fee, up to 60% LTV) to 3.96%, the lowest five-year fixed rate available on the market. This product is available to customers who are buying an energy-efficient new-build home directly from the builder or developer, where the home has an energy efficiency rating of 81 or above, or is in energy efficiency bands A or B.

Other rates are reducing by as much as 0.48% in some cases-  for example, the lender's two-year fixed rate product at 90% LTV with no product fee will now start from 4.93%. 

The maximum loan amount for 90% LTV purchases for houses and flats has also increase - the cap for houses is changing from £570k to £640k, while the cap for flats going from £275k to £310k.

All changes are effective from tomorrow (Tuesday 4th March).

Sian McIntyre, managing director of mortgages and savings at Barclays, said: 

“With bills and costs rising, we know how challenging homebuyers are finding things right now. We’ve introduced several rate drops already this year across our mortgage range, making a real difference in affordability, and we’re delighted to announce more rate cuts. This includes bringing our Green Home mortgage even further below 4%, making it the lowest five-year fixed rate available on the market.”