Barclays introduces early repayment charge free £750,000+ mortgage

by Aaron Strutt

Nov 30 2016

Barclays for Intermediaries has introduced an early repayment charge free mortgage to target wealthier borrowers looking for flexible larger loans.  

Earlier this year Barclays applied a 1% exit fee and insisted clients taking tracker rate mortgages pay an early repayment charge if they want to repay their mortgage within the first two years.

Aaron Strutt, product director at Trinity Financial, says: “Even though many of the other lenders offer flexible mortgages, they do not tend to provide 5.5 times salary mortgages* or such competitively priced large loan rates.”

“Barclays tracker rates are always popular, but they have lost business to other banks and building societies because clients do not want to be locked into a mortgage.”

Trinity has access to the 1.74% five-year tracker, priced at 1.49% over the Barclays Bank Base Rate (BBBR). At the end of the tracker period, the mortgage reverts to 3.49% over the BBBR, which is currently 3.74%. The overall cost for comparison is 3.03% APRC.

There is a £2,999 arrangement fee and applicants will require a 25% deposit to qualify. The mortgage is available for loans between £750,000 and £2 million.

*Please note, Barclays 5.5 salary mortgages must be taken on a full capital repayment basis, although they are available to other clients seeking interest-only providing they meet its acceptance criteria.

Representative example: A mortgage of £750,000 payable over 25 years, initially on a variable rate for five years at 1.74% and then on a higher variable rate of 3.74% for the remaining 20 years, would require 60 monthly repayments of £3,084.83 followed by 240 monthly repayments of £3,701.63. The total amount repayable would be £1,076,595 made up of the loan amount, plus interest (£332,481) and fees of £2,999. The overall cost for comparison is 3.31% APRC representative.

To secure a larger mortgage loan, call Trinity on 020 7016 0790 or complete our enquiry form.