Barclays chops rates further for first-time buyers
Thursday 31st January 2019
Barclays has further cut mortgage rates for borrowers with small deposits after reducing deals earlier this month.
The lender is to now offer homebuyers with a deposit of only five per cent a two-year fixed rate of 2.86 per cent, as well a five-year fix of 3.35 per cent.
Barclays is reducing the rate on its two-year fixed rate with £1,000 cashback to 3.34 per cent at 95% loan to value (LTV).
The bank had already reduced rates on the two-year fixes above earlier in January, in a sign of the fierce competition for first-time borrowers among lenders.
Housebuilders added to green home mortgages
Barclays has also increased the number of housebuilders it partners with on its green home mortgage from five to 13.
The deal uses lower mortgage interest rates to reward homebuyers who purchase an A or B energy performance certificate (EPC) rated new build home from one of the panel of builders.
Borrowers can get a preferential interest rate on two and five-year fixed rate mortgages up to 90% LTV and Help to Buy mortgages up to 75% LTV.
It means home movers purchasing a new build property could achieve a savings up to £375 on a typical mortgage of £150,000 over the five-year fixed rate term.
The new partner builders include Bovis Homes, Persimmon Homes and Taylor Wimpey.
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