Woolwich reopens 75% door to intermediaries

Barclays returned to offering 75% LTV for buy-to-let through brokers last week, after relaunching via the direct channel a week earlier.

Through its Woolwich brand, the lender is offering a two-year fixed rate up to 75% LTV at 5.29% and a two-year tracker up to 75% LTV at base plus 3.99%.

It has changed its fee structure since its launch through the direct channel and instead of charging a flat £3,999 fee for all cases, it has tiered its fee structure.

For deals between £50,000 and £125,000 the fee will be £1,999, rising to £2,999 for those between £125,000 and £250,000 and £3,999 for deals over £250,000.

The lender was forced to pull its 75% LTV deals in November, less than a month after launching them, to manage service.

It suffered another setback earlier this month when its back-office system for processing buy-to-let cases crashed for two days.

David Whittaker, managing director of Mortgages for Business, says: “Barclays will have to prove itself to the broker market. It is not so long ago that it had service issues which were not isolated.

“The products it has launched are quite competitive, which raises questions about how it will manage service.”

Aaron Strutt, head of communications at Trinity Financial Group, says that although Barclays has had issues with its service in the past, the deals are competitive and brokers know what to expect from the lender.

He says: “The rates are attractive and even though it is still charging the £3,999 fee for deals over £250,000, it will lend up to £1m, which some others won’t.”

Woolwich also launched a residential 10-year fixed rate at 70% LTV last week with a rate of 4.99% and cut its three-year fixed rate at 90% LTV to 5.99% from 6.24%.

But it increased its two-year fixed rate at 70% LTV by 0.25% from 3.49% to 3.74% and all its tracker and offset mortgages by 0.21%.

The lender says the price hikes follow uncertainty around the eurozone which has influenced funding across the market.