Barclays will increase the loan-to-value on its Woolwich ‘great escape’ remortgage deal from tomorrow.
The lender has increased the LTV available to borrowers from 70 to 75 per cent. The tracker deal at 70 per cent remains at base rate plus 2.18 per cent, while the new 75 per cent deal is priced at base rate plus 2.48 per cent.
Both trackers come with the switch and fix option – which allows customers to switch to a fixed rate at any time without penalty. The deal is also now available with a fixed rate at both 70 and 75 per cent, which is aimed at borrowers who wish to fix straight away. The fixed rates are priced at 3.28 per cent and 3.48 per cent respectively.
The deals come with no application fee, free legal work and £300 cash back.
Barclays head of mortgages Andy Gray 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.”
Barclays is also cutting the rates on some of its two and five-year fixed rates by an average of 0.2 per cent.