Barclays withdraw some super-cheap mortgage deals and NatWest raises selected fixed rates
Quick Summary
Barclays is one of the first big lenders to raise mortgage costs this year and withdraw some of the rates available to higher earners. The bank has made many of its lower deposit rates, often used by first-time buyers, more competitively priced while pushing up the prices of its cheapest mortgages. NatWest has also raised the price of it fixed rates.
Barclays has made a mixture of rate changes including price increases and decreases, plus product withdrawals. The bank is pulling its 3.56% two-year fix, 3.70% three-year fix and 3.78% five-year fix for premier customers.
NatWest has also raised some of its fixed rates by 0.10%, while Santander is also increasing some rates by up to 0.07%.
The cost of funding seems to have edged up, but Barclays has taken the unusual step of withdrawing its cheapest rates rather than replacing them. There is still time for applicants to get their mortgages agreed and secure these rates, but they will need to be quick. Barclays is one of the most generous lenders at the moment, offering low rates and income multiples of up to 6 times salary.
Aaron Strutt, product director at Trinity Financial, says: "The big mortgage lenders have not been making as many rate or criteria changes over the last week, although they are starting to come through now. The major banks and building societies had such a busy start to the year to show that they were open for business that the sheer volume of rate and criteria changes was always going to slow down. Lots of lenders are still offering two-year fixes from 3.50% and five-year fixes from 3.75%."
What has been happening to mortgage rates this week in general?
Several lenders reduced their fixed rates this week, with notable cuts from Mansfield Building Society of up to 70 bps and Clydesdale Bank of up to 45 bps.
- Hinckley & Rugby Building Society: Selected and fixed rates – cut by up to 0.18% discounted variable rates cut by up to 0.30%
- TSB: Selected fixed rate – increased by up to 0.10%
- Saffron BS: Selected self-employed & contract fixed rates – cut by up to 0.20%
- Hodge: Selected fixed rates – cut by up to 0.20%
- Mansfield BS: Selected fixed rates – cut by up to 0.70%
- Clydesdale Bank: Selected fixed rates – cut by up to 0.45%
- Skipton BS: Selected fixed rate – cut by up to 0.14%
- Accord Mortgages: Standard variable rate – cut by 0.25%
Source: Moneyfacts and mortgage lender updates
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