“Boost for borrowers” as Barclays is latest lender to cut mortgage rates - including for those at higher LTVs

BARCLAYS is the latest lender to cut a number of its fixed mortgage rates - including for those at higher Loan to Value (LTV) - in a “welcome” sign for the market.

From tomorrow, the bank will decrease rates on two-year fixed deals to as low as 4.12% for borrowers with a deposit or equity of 15%.
 

Mortgage brokers said the market was “hard to predict” but the cuts are positive news for borrowers.

Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, said: "Barclays has just given borrowers with smaller deposits or less equity in their homes a real boost. It's encouraging that rates at higher loan-to-values are getting lower, making homeownership that little bit more affordable. 

“Competition on the high street could heat up once September is upon us, as the autumn is often a busy period for transactions as people seek to get into their new homes before Christmas.”

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said the rate cuts are a “good sign for the market”.

He said: "This latest cut in rates is more for those with the smaller deposits or equity in their properties, but it's an important move given that other high street lenders have pushed rates up for the same borrowers. 

"This looks more like a tactical repricing than anything to do with the recent base rate cut, but all positive rate changes will be a good sign for the market as a whole."

Elliott Culley, Director at Hayling Island-based Switch Mortgage Finance, said the news was “welcome”.

He said: “Mortgage lenders are currently targeting different sectors of the market, with some supporting lower deposit borrowers, whilst others have taken a less risky approach by reducing rates for higher deposit borrowers and increasing for borrowers with smaller deposits. 

"The decision today by Barclays will be a welcome one for borrowers with smaller deposits as these rates for 85% LTV creep closer to below 4%.”

David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth Ltd, also said: “Barclays has introduced some competitive rates for those with a skinny deposit, in particular their 4.12% 2 year fixed likely to be topping the sourcing for brokers tomorrow. 

"It's all adjustments of weights and balances from the banks as they try to even up their books and attract different types of borrowers. 

"It's hard to predict which direction rates are going at the minute, with Accord putting out mixed messages both raising and decreasing certain rates along with Santander this week.”