Barclays launches The Great Escape remortgage package
Share
Barclays is launching The Great Escape remortgage campaign tomorrow to try and encourage customers to remortgage from their lenders standard variable rate.
The lender says the campaign is aimed at borrowers who worry it would cost them too much to move to better rates elsewhere, there are an estimated 700,000 mortgages which are on lenders’ standard variable rates.
Barclays is offering borrowers a tracker mortgage at 2.18% above base rate at 70% LTV, with no application fee, free legal work and valuation as well as £300 cash back to cover their existing lender’s exit fee.
Customers will have access to its Switch & Fix offer, which enables borrowers to switch to a Woolwich fixed rate mortgage at any time without paying any early repayment charges.
Andy Gray, head of mortgages for Barclays, says: “We have built this package specifically to help the 700,000 families who feel trapped on their current lender’s SVR. We know many of the barriers that stop people remortgaging are simply down to cost.
“We believe the deal will help stimulate the market as it cuts those costs out and provides an additional £300 cashback. With many SVRs at 3.5% or more, customers could save £60 per month or over £700 annually on a £150k repayment mortgage. If their SVR is 4% they will save over £1,200 annually.
“While base rate remains at 0.50%, anybody delaying the decision to ditch SVR is paying more than they need to.”
Barclays closed its SVR to new customers in 2006. Since then, all customers move onto a lifetime tracker when their initial deal comes to an end.
As a result, Woolwich mortgages have less than 3% of mortgage balances on standard variable rate.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
