Barclays will tomorrow offer its lowest-ever 10-year fixed rate mortgage at the same time it makes cuts of up to 1.1 per cent on selected residential mortgages.
The 10-year deal, which has a £1,499 fee, will be cut from 4.99 per cent to 3.89 per cent tomorrow.
Barclays will also cut a five-year fixed rate for those with a 30 per cent deposit by 0.4 per cent from 3.39 per cent to 2.99 per cent. There is a £999 fee, or £499 for loyalty customers, who are borrowers with a Barclays current account.
Other changes include a 0.21 per cent cut to a two-year tracker, from base plus 1.89 per cent to base plus 1.68 per cent. This product has a £999 fee, or £499 for loyalty customers.
It is also cutting the rate on a two-year offset mortgage by 0.3 per cent to base plus 2.49 per cent and by 0.3 per cent on its lifetime offset to base plus 2.89 per cent. Both of these products are available to 70 per cent LTV.
Barclays managing director of mortgages Andy Gray says: “This is a real boost for UK homebuyers, giving them access to cheaper mortgage deals, brought about by the combination of the low base rate and the continued benefits of the funding for lending scheme.
”Fixed rates are proving increasingly popular with borrowers who are looking for the certainty of securing their mortgage payments over the longer term and we have helped these customers by giving them access to some of our lowest-ever fixed rates in 2013, including the 10-year fixed launched.”
The new rates that will take effect from tomorrow (Click image to enlarge):