Barclays cuts offset mortgage rates

5 April 2011 | By Tessa Norman

Reductions include a 75% loan-to-value deal, which has been cut from 3.29% above base rate to 2.79% above base rate.

At 70% LTV, the product has been reduced from 2.59% to 2.48% above base rate.

Furthermore, offset trackers in Woolwich’s loyalty range have also been cut, with the 70% LTV deal now at 2.28% above base rate, down from 2.39%, and the 75% LTV product down to 2.59% above base rate, from 2.99%.

Laoiseach Lynch, head of mortgage products at Barclays, says: “As the tax year draws to a close, now is a great time for borrowers to take stock and assess how they can make their mortgages and savings work together to limit the impact of tax and inflation.

“Offsetting is the most tax efficient way to manage both savings and a mortgage so it makes sense for borrowers to look at these options.

“Also, the added benefit of repaying your mortgage earlier could save you money in the long run, which is good news in any economic climate.”

Barclays has also made changes to some its Woolwich fixed and tracker mortgages, replacing all four-year fixed rates with five-year fixed rates.

Rates on its two-year fix 70% LTV special, loyalty and core mortgages have been cut by 0.10% and 0.11%, while the rate on its tracker mortgage at 70% LTV has been reduced by 0.20%.

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