Barclays to offer 1.89% two-year fixed rate

Barclays is to cut a selection of two-year fixed rates by up to 0.15 per cent, meaning it now offers rates as low as 1.89 per cent.

Tomorrow it will cut a 1.99 per cent product for loans between £500,000 and £2m by 0.1 per cent. It has a £1,999 application fee and is available on loans to 65 per cent loan-to-value.

The lender will cut a 2.09 per cent product by 0.1 per cent to 1.99 per cent, which is available on loans to £1m and to 60 per cent LTV.

It will also cut 70 per cent LTV product by 5 basis points to 2.18 per cent, a 75 per cent LTV product by 8 basis points to 2.35 per cent and an 80 per cent LTV product by 0.15 per cent to 2.8 per cent. All products have £999 fees, or £499 for loyalty customers.

Barclaysis also launching three new product.

This includes a 3.35 per cent two-year fixed rate available to 3.35 per cent, which has a £999 fee, or £499 for loyalty customers.

It will also launch two new three-year fixed rates for new-build properties – a 2.75 per cent deal to 70 per cent LTV and a 3.75 per cent deal to 85 per cent. Both products have £499 fees.

Barclays managing director of mortgages Andy Gray says: “The summer holidays are now well and truly over with the kids going back to school this week, meaning only good news for the mortgage market. People will be looking at ways to  get on or move up the property ladder and now is a great time to do this. 

We expect demand for short term mortgage rates to remain strong  which is why we’re passing on the benefits of lower rates to these borrowers.”