Barclays for Intermediaries has lowered the price and increased the maximum loan size on many of its cheapest fixed-rate mortgages.
Barclays lowest rate is 1.21%, and it is fixed until 2 May 2022. Once the deal expires, it reverts to the 3.49% over the Barclays base rate. The overall cost for comparison is 3.1% APRC representative.
The 1.21% rate has a £999 arrangement fee, and applicants will need a 40% deposit to qualify. The maximum loan size used to be £2 million, but it has increased to £5 million.
Aaron Strutt, product director at Trinity Financial, says: “Barclays maximum loan size change makes its products pretty much market-leading in the large loan market, especially as the lender provides 5.5 times salary mortgages for those earning over £50,000.
“NatWest for Intermediaries and HSBC for Intermediaries provide larger loans, but their affordability calculations are not necessarily as generous as Barclays.”
Longer-term fixed rates
Barclays for Intermediaries has also lowered the rates on it's five, seven- and ten-year fixed rates.
The most competitively priced longer-term rate is as low as 1.47%, and it is fixed until 30 April 2025. Once the deal expires, the rate also reverts to 3.49% over the Barclays base rate. There is a £999 arrangement fee and borrowers will need a 40% deposit to qualify. This rate is available for mortgages between £5,000 and £5 million.
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The banks and building societies have a particularly strong appetite to provide mortgages at the moment and some of them are offering their cheapest rates for £1 million+ applications.
The mortgage market is very strictly regulated and a similar amount of work goes into approving a mortgage application whether the client plans to borrow £50,000 or £2 million.
It is easier for a lender to do one mortgage for £2 million rather than lots of smaller ones totaling the same amount.
The cost of funding these larger loans is also incredibly cheap particularly with savings rates still low and many borrowers boosting the bank's profits by paying expensive standard variable rates.
Barclays is one of the few lenders to offer a range of competitively priced tracker mortgages without early repayment charges.
The tracker rates are more expensive than the bank's two-year fixed rates but they are flexible because they do not have high exit fees.
Many borrowers choose to lock into a fixed rate because they do not always know that flexible tracker mortgages exist. These products are ideal for those who may be thinking about selling their property or releasing equity in the near future.