Mortgage lenders are still offering cheap tracker rates following the Bank of England’s base rate reduction to 0.10%.
Barclays for Intermediaries is providing one of the cheapest ever mortgages with a pay rate as low as 0.84% with a margin of 0.74% over the 0.1% base rate. After two years the tracker rate reverts onto the lenders 3.59% standard variable rate and the overall cost for comparison is 3.8% APRC.
The product does not have any early repayment charges and applicants will need a 25% deposit to qualify. The maximum loan size is £500,000 and there is a £999 arrangement fee. The bank provides a free property valuation and legal service for remortgages reducing the cost of switching providers.
Over the last few days a host of banks and building societies have pulled or increased the price of their tracker rates as they struggling to fund the ultra-low deals. Big named providers including Metro Bank, HSBC, Santander, Nationwide Building Society and Scottish Widows Bank all made changes to their tracker rates.
Aaron Strutt, product director at Trinity Financial, says: “Most borrowers have opted for fixed-rate mortgages over the last few years but many of our clients are more interested in following the dramatic changes to the Bank Rate.
“Barclays’ rate is a stand our best buy but like many of the lenders it is struggling to process mortgages with the current virus causing so many problems.”
Call Trinity Financial 020 7016 0790 to secure a tracker rate mortgage
If you are looking for the cheapest possible mortgage then Barclays trackers are leading the way.
The Barclays rates are so competitively priced they comfortably undercut the best-fixes and they provide borrowers with the flexibility to make overpayments and switch to a fix when the base rate finally starts to rise.
Halifax for Intermediaries and NatWest have two-fixed rates below 1.15% for borrowers with 40% deposit and five-year fixes are still available below 1.50%.
If you qualify for a cheap tracker that undercuts the fixed rates they are still worth taking especially if you expect the base rate. For those borrowers who want payment security during these troubled times, there are two, three, five, seven and ten-year fixes available at surprisingly low prices.