Barclays cuts fixed rates but increases trackers

Barclays is reducing rates on a third of its Woolwich fixed rate mortgages, but is increasing rates on some of its tracker and offset deals.

The lender is cutting rates on its fixed deals by an average of 0.14%, meaning it is now offering two-year fixes from 2.58% and five-year fixes from 3.64% at 70% LTV.

It is also increasing rates on its tracker mortgages by an average of 0.30%, while two of its offset deals will see rate increases of up to 0.20% and four offset products will see application fee rises of between £500 and £1,000.

For instance, its offset lifetime tracker at 70% LTV has gone up from base + 2.48% to base + 2.59%, and had its application fee increased from £999 to £1,999.

The lender is maintaining the rates on approximately a third of all its products.

A spokeswoman for Barclays says: “These changes support our continued focus to provide good priced mortgages in a highly competitive market.  

“This is against a backdrop of a series of economic indices over the last few weeks, which have influenced the funding in the market, for example concerns surrounding the Eurozone and a second global recession.”