Barclays has implemented another interest rate cut with plans to reduce some of its mortgage rates by up to 0.48 percentage points.
As of today, the bank will offer a five-year fixed-rate Green Home mortgage at 3.96 per cent, a slight drop from 3.99 per cent.
This headline rate is available to customers buying energy-efficient new-build homes directly from builders or developers.
Borrowers will need a substantial 40 per cent deposit to access this rate and the deal comes with an £899 product fee.
Sian McIntyre, the managing director of mortgages and savings at Barclays, said: “We’ve introduced several rate drops already this year across our mortgage range, making a real difference in affordability.”
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Barclays is among the lenders to slash mortgage rates
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As well as this Barclays’ refreshed range also includes a two-year fixed-rate mortgage for borrowers with a 10 per cent deposit, priced at 4.93 per cent with no product fee.
The bank has simultaneously increased the maximum loan amount for purchases with a 10 per cent deposit. For houses, the cap has risen from £570,000 to £640,000.
The cap for flats has also increased from £275,000 to £310,000. These changes come as other lenders make changes to enhance mortgage affordability.
Furthermore, Nationwide Building Society has made moves in the mortgage market, reducing some rates to 3.99 per cent last Friday.
Nationwide Building Society is also slashing mortgage rate s
NATIONWIDE BUILDING SOCIETY
These competitive rates are available to existing customers looking to move to a new deal and to new customers seeking to remortgage.
The building society’s new rates include a “switcher” mortgage at 3.99 per cent for a five-year term. This is available to existing customers whose current mortgage deals are ending.
Borrowers will need a 40 per cent deposit and must pay a £999 fee. Nationwide is also offering a 3.99 per cent five-year fixed rate for remortgage customers with a 40 per cent deposit.
This deal comes with a higher fee of £1,499. The rate cuts from both Barclays and Nationwide reflect growing competition among lenders as they vie for business.
With these latest moves from high street lenders, mortgage experts have welcomed the competitive rates now available to borrowers.
Rachel Springall, a finance expert from Moneyfactscompare, said: “Borrowers hoping for mortgage rate cuts to dominate this spring will be pleased to see such a prominent lender reducing fixed rates in their range.”
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Mortgage repayments have shot up for many borrowers in recent years GETTYHowever, the mortgage guru cautioned that borrowers should look beyond headline rates when attempting to secure the best deal.
“A headline-grabbing rate is exciting, but it is essential for borrowers to assess the whole package of any deal before they commit,” she advised.
Matt Smith, a mortgage expert at Rightmove, also noted: “The market has settled better than expected after the unexpectedly high inflation figure.”
“Average mortgage rates on many products have trickled downwards, and we’ve even seen the return of some eye-grabbing sub-four per cent mortgage rates for those with the biggest deposits.”