Barclays reduces fixed rates by up to 0.20%

Barclays is lowering the majority of its two-year fixed rates mortgages by up to 0.20% tomorrow.

The lender is also lowering the rate on its NewBuy deal and introducing two new deals to its mortgage range.

The changes include a two-year Great Escape remortgage package cut from 3.89% to 3.74% for loans at 70% LTV.

Other changes across the range include a reduction of 0.20% on the two-year fix at 60% LTV reduced from 3.49% to 3.29% and from 3.59% to 3.39% at 70% LTV. At 80% LTV the rate will fall from 3.79% to 3.69%.

In addition the NewBuy rate and application fee has been cut. The three-year fixed will fall from 6.09% to 5.89% with a £500 reduction in the application fee to £499.

Alongside these rate reductions, Barclays is adding two mortgages to its range at 65% LTV for loans over £500,000 and available up to £2m with a two-year offset mortgage at base + 2.49% and a two-year fixed rate at 2.99%, both come with a £1,999 application fee.

Andy Gray, head of mortgages at Barclays, says “We are starting to see a trend of more people looking to remortgage in light of recent increases to more than a million borrowers sitting on competitors SVRs Cutting rates today is about giving people the right mortgage at the right time to help secure their monthly payments.

“A borrower with a mortgage of £150,000, switching from a SVR of 4.79% to the Great Escape fixed at 3.74% could save more than £2,000 over two years if base rate continues to stay at 0.50%.”

The Great Escape mortgage allows borrowers to switch their mortgage to Barclays with no application fee, free legal work, free valuation and £300 cashback.