Barclays launches lowest market rate as mortgage rate war continues

Barclays has reduced mortgage rates by up to 0.34% across its residential purchase and remortgage range, effective from tomorrow, Wednesday 25th September.

In its existing range, five-year fixed rates have reduced by 13bps at 60% LTV, now starting from 3.70% for a premier product and 3.71% for a standard product, both with an £899 fee. These rates undercut Nationwide’s launch yesterday of a five-year fix at 3.74%.

The bank has also launched a new range of residential purchase-only products, with a two-year fixed rate available at 4.75% up to 85% LTV and a five-year equivalent product at 4.87%. Both come with a £1,999 product fee. A premier five-year fix has launched at 4.60% up to 90% LTV with a £999 fee, while a two-year green home product at 60% LTV has a headline rate of 4.33% with no fee.

For remortgage, a two-year fixed rate at 60% LTV is available at 4.16% with a £999 fee, while a Great Escape two-year fixed rate is down by 34bps to 4.43% at 60% LTV with no fee.

Available for both purchase and remortgage, two-year fixed rates have reduced to 4.19% at 60% LTV and 4.29% at 70% LTV, both with a £1,999 fee.

In its existing customer Reward range, two-year fixed rates are now available from 4.16% at 60% LTV with a £999 fee and 4.43% fee-free. A two-year fix at 70% LTV has decreased to 4.19% with a £1,999 fee.

Mark Harris, chief executive of mortgage broker SPF Private Clients, commented: “No sooner does one lender offer a sub-3.75% five-year fix, then another joins the fray, with Barclays launching a market-leading 3.71%.

“The clear direction of traffic for mortgage rates is downwards, with lenders gently easing pricing as they compete for business.

“We don’t expect any dramatic reductions going forward but nevertheless, subtle improvements in rates will make life easier for borrowers."