Fancy a seven-year fixed rate mortgage at 2.26%?
Barclays for Intermediaries is offering one of the most competitively priced longer-term fixed-rate mortgages at 2.26%.
Most borrowers tend to opt for two, three or five-year fixes when they take a mortgage, and they do not consider seven-year rates. Now that rates are set to rise, they are a decent option, especially if you plan to stay in your home.
What are the details of Barclays seven-year fix?
Barclays lowest longer-term rate is 2.26%, and it is available for property purchases and remortgages. It is fixed until 31 May 2029, and applicants will need a 40% deposit to qualify. The maximum loan is £2 million and 3% early repayment charges apply.
After the fixed period, the mortgage reverts to 3.49% over the Bank of England base rate (currently 4.24%), and there is a £999 arrangement fee.
Aaron Strutt, product director at Trinity Financial, says: “There have been some significant rate increases recently, and the cheapest fixed rates have gone up a fair bit.
“If you take a longer-term fix, it is important to understand how much it will cost to get out of the loan. Early repayment charges can be expensive."
Should I take a five, seven or ten year fixed rate mortgage?
More banks and building societies are offering long term fixes, and despite the recent rate hikes, they are still competitively priced.
While it is impossible to predict the future, if you take a five, seven or ten-year fix, it is important you plan to stay in the property, and essential you do not expect to sell it any time soon.
Representative example: A capital and interest mortgage of £500,000 payable over 30 years, initially on a fixed rate basis until 31 May 2029 at 2.26% and then on a Bank of England base rate tracker (BoE plus 3.49%) currently 4.24% for the remaining 28 years, 1.94% would require 84 monthly repayments of £1,917.61 followed by 276 payments of £2,324.03. The total amount repayable would be £807,479/52 made up of the loan amount, plus interest (£306,480.27) and £1,999 (product fee), £80 (final repayment charge), £35 (completion fee). The overall cost for comparison is 4% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration. Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation