Barclays is increasing the LTV on its Great Escape remortgage package to 75% and will introduce a new range of deals from November 23.
The 70% LTV rate remains at 2.68%, or 2.18% above base rate, but a further tracker deal at 75% LTV is available at 2.98%, or 2.48% above base, has been introduced.
Both trackers come with the switch and fix option, but for those customers who would rather fix their rate straight away, the Great Escape is now available with a fixed rate at both 70% and 75% LTV.
The rates are 3.28% at 70% LTV, and 3.48% at 75% LTV.
All Great Escape deals are aimed at borrowers who worry it would cost them too much to move to better rates elsewhere.
They come with no application fee, free legal work and valuation and £300 cashback to cover the cost of a borrower’s exit fee for leaving their present lender.
Borrowers taking up a tracker deal will be able to switch to a fixed rate whenever they choose, without penalty.
Andy Gray, head of mortgages for Barclays, says: “We’ve seen a huge demand for the Great Escape package since we launched a month ago with customers moving their mortgage from lenders including Lloyds, Santander, Nationwide and Natwest. We estimate the average customer is saving £1,150 per year through switching.
“We believe the improvements announced today will help stimulate the re-mortgage market further as borrowers with less equity in their homes will be catered for.
“With base rate still expected to remain the same for some time, borrowers will continue to feel trapped on their standard variable rate, so now is the right time to be helping even more borrowers facilitate a move and save money, especially as this is one of the most competitive packages in the market. We predict there are 750,000 families who could benefit from our deals announced today.”
In addition to the Great Escape changes, Barclays is also cutting the rates on some of its two and five year fixed rate mortgages by an average of 0.20%.
The two-year fixed rate at 75% LTV is cut by 0.20% from 3.59% to 3.39%, at 80% LTV the rate is cut from 4.38% to 4.19%.
The five-year rate at 70% LTV is reducing from 4.49% to 4.29% and 80% LTV from 5.39% to 5.18%.
Barclays Loyalty mortgages are also being cut by up to 0.30%, offering better deals for Barclays current account customers.