Barclays launches Future Fix mortgage
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Barclays is launching a new mortgage tomorrow that allows borrowers to have a tracker rate for the first two years and then switch to a fixed rate for the remaining three years of the deal.
The Future Fix is available up to 70% LTV with a five-year term and a £1,299 application fee.
Borrowers pay base +2.99% for the first two years, followed by a fixed rate at 4.29% for the next three years.
The lender has also extended its three-year fixed rate at 3.69% and five-year fixed at 4.29% from 60 to 70% LTV.
For borrowers who are borrowing more than £250,000, a new two-year fixed rate at 2.84% and a two-year offset at base plus 2.49% are also available.
On buy-to-let mortgages the application fee structure is changing - for mortgages up to £500,000 the fee will be set at £1,999 and for mortgages over £500,000 the fee will be £3,999.
Andy Gray, head of mortgages at Barclays, says: “These changes reinforce our commitment to the mortgage market and to giving customers choice and value, with an innovative option.
“Future Fix gives borrowers the best of both worlds, especially for those who may have been put off by trackers previously, as it offers a really good compromise - tracking whilst rates are low now and also fixing at today’s historically low prices for two years time.”
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