‘A headline-grabbing rate is exciting, but it is essential for borrowers to assess the whole package of any deal before they commit’
Barclays is rolling out a fixed mortgage rate of 3.96%, down from the previous 3.99% from Tuesday.
This drop of up to 0.48 percentage points includes deals like the Green Home mortgage for energy-efficient new-build home purchases, demanding a 40% deposit with a £899 product fee. Other offerings include a two-year fix at 4.93% for those with just a 10% down payment, with no product fee.
Loan caps have also risen at Barclays for homes and flats purchased with a minimal deposit. The maximum is £640,000 for houses (up from £570,000), and £310,000 for apartments (previously £275,000).
Sian McIntyre, Barclays’ managing director of mortgages and savings, said: “We’ve introduced several rate drops already this year across our mortgage range, making a real difference in affordability.”
On Friday, Nationwide Building Society reduced some of the rates it is offering down to 3.99%, to existing customers looking to move to a new deal and to new customers looking to remortgage.
Nationwide’s new rates include a “switcher” mortgage for existing customers coming to the end of their current mortgage deal at 3.99%, for a five-year term. Borrowers will need a 40% deposit and a £999 fee will apply.
There is also a 3.99% rate for five years from Nationwide for borrowers with a 40% deposit who are looking to remortgage. That deal has a £1,499 fee.
However, she cautioned: “A headline-grabbing rate is exciting, but it is essential for borrowers to assess the whole package of any deal before they commit. Some deals are also exclusive to certain customers, so it’s wise for borrowers to seek independent advice to navigate all the options available to help save them time and hassle.”
Matt Smith, a mortgage expert at Rightmove, noted: “The market has settled better than expected after the unexpectedly high inflation figure. Average mortgage rates on many products have trickled downwards, and we’ve even seen the return of some eye-grabbing sub-4% mortgage rates for those with the biggest deposits.
“It shows that mortgage lenders are still keen to compete for business as we head into the thick of the annual spring selling season. However, as we have recently seen, these cheapest rates are susceptible to changing market conditions and we’ll have to see how the market reacts to upcoming economic news.”
