Barclays wage war on competitors
Barclays has launched an aggressive remortgage campaign aimed at customers affected by recent standard variable rate (SVR) increases.
The high street lender has slashed its two-year fixed Great Escape remortgage product by 0.25 per cent. The rate is now available at 3.49 per cent for up to 70 per cent loan-to-value (LTV) properties.
The cuts are in direct contrast of many lenders who have increased their SVRs in an attempt to attract new customers.
Since May, several major lenders have increased SVRs with Santander set to be the latest culprit with a 0.5 per cent rise from 3 October.
It is estimated approximately 1.2m customers will be affected by the SVR hikes.
Andy Gray is the Head of Mortgages at Barclays:
“With the recent changes in SVRs, there is an opportunity to re-stimulate the remortgage market and save people money at a time when they it most. This is why we have made these cuts.”
Barclays are also looking after the interests, and purse strings, of current customers. They have cut retention mortgage rates by 0.5 per cent, offering existing customers who have three months remaining on their fixed or tracker mortgage terms two new mortgage deals – a two year fixed rate at 2.79 per cent and a five year fixed rate at 3.49 per cent. Both product are fee free and are available up to 95 per cent LTV.
These exclusive rates change from month-to-month and have this month fallen from 3.19 per cent and 3.99 per cent for two year and five year fixed rates respectively.
The lender has also reduced its three year NewBuy mortgage to 5.49 per cent as well as cutting a selection of two, four and five year fixed rate products.
Content correct at time of publication