Barclays is the latest lender to offer a five-year interest rate fix of less than 3.75%. In terms of existing product drops, from September 25 on home purchases only, the lender’s 3.84% five-year fixed product fee of £899, 60% LTV will drop to 3.71% (min loan £5,000, max loan £2 million).
Commenting on the rate cuts, Mark Harris, CEO of mortgage broker SPF Private Clients, said: “As soon as one lender offers a five-year rate below 3.75%, another joins the fray, with Barclays launching a market-leading 3.71%.
“The clear direction in which mortgage rates are moving is downward, with lenders gently cutting prices as they compete for business.”
He added: “We don’t expect dramatic cuts in the future, but subtle improvements in interest rates will still make life easier for borrowers.
In addition to reducing rates on a selection of existing products by as much as 0.34%, the lender is also launching a range of new products aimed at both first-time and second-time buyers.
For new homes, only the lender offers 4.75% a two-year fixed product fee of £1999, 85% LTV (min loan £2 million, maximum loan £5 million). A Premier premium of 4.60% with a five-year fixed term, a product fee of £999, a 90% LTV (min loan £5,000, maximum loan £570,000). A five-year fixed product fee of £1,999 at 4.87%, an LTV of 85% (min loan £2 million, maximum loan £5 million); and a Green Home fix of 4.33% for two years, £0 product fee, 60% LTV (min loan £5,000, max loan £2m)
Remortgage only – the 4.37% Premier two year fixed, £999 product cost, 60% LTV, (min loan £5,000, max loan £2m), will drop to 4.16% per annum.
While the fixed two-year loan of 4.40%, £999 product fee, 60% LTV, minimum loan £5,000 (max loan £2m) will drop to 4.19%.