Barclays launches aggressive remortgage and retention campaign

[Ruprect]

We looked at that and were told we could keep the rate if we moved.

Thanks - good to know

[MarillionFan]

Me too on the tracker. Now the miss us wants to move but I'll never get anything like as good. Perhaps I should rent and keep this one and rent it out

We looked at that and were told we could keep the rate if we moved.

[Ruprect]

Me too on the tracker. Now the miss us wants to move but I'll never get anything like as good. Perhaps I should rent and keep this one and rent it out

[MarillionFan]

0.45 above base for me

However I only got this as I bought at the height of the boom


But, because of the low rate, after just 5 years on a 30 year mortgage the payment already goes 75% capital 25% interest. BOOMED!

WHS. The maths worked out at the time and the interest rate drop since has been great. I borrowed £425k at the time but had some rental properties and some additional equity. I was planning to sell so took an offset at a high percentage having worked out I needed just 1/3 of the borrowed amount to be equal to the best fixed deal at the time. I still owe £425k but have squirrelled the equity away into lots of other investments which now return £16k a year after tax. I pay just £4250 a year.

[blacjac]

!

0.48% above base rate offset tracker for life for me. Result.

Fantastic stuff. Is that one of the old C&G deals from about 5 years ago?

i thought my A&L 1.99% + BOE base rate (from 5 years ago) was good, but thats ^^ smashed it.

0.45 above base for me

However I only got this as I bought at the height of the boom


But, because of the low rate, after just 5 years on a 30 year mortgage the payment already goes 75% capital 25% interest. BOOMED!

[Fandango]

We're in the process of buying a 2nd home (going to keep & rent out our current property) so are looking at new mortgages at the moment. Woolwich are offering 3.29% + Base Rate Tracker for life for 80% LTV which is looking like our best option at minute on new property.

Unless anyone has spotted any better deals? I can't get any lower than 80% LTV though

[MarillionFan]

Fantastic stuff. Is that one of the old C&G deals from about 5 years ago?

Woolwich. Had it for at least 8/9 years. Took it when it was a lot higher. Scrag will be here shortly to beat my rate. ;-)

[Fandango]

i thought my A&L 1.99% + BOE base rate (from 5 years ago) was good, but thats ^^ smashed it.

[Martin@AS Financial]

0.48% above base rate offset tracker for life for me. Result.

Fantastic stuff. Is that one of the old C&G deals from about 5 years ago?

[MarillionFan]

0.48% above base rate offset tracker for life for me. Result.

[Martin@AS Financial]

With Santander recently increasing their standard variable rate, this could well promote the next wave of svr increases across the board. As lenders have increased appetite to lend, it could now well be the time to look at taking a new mortgage product. For example, if you have a £250,000 mortgage with Abbey at a rate of 4.24% on a repayment basis over 25 years, your monthly payment is £1360. Come October when their SVR increases to 4.74%, your new monthly payment will be £1431. This is an increase of £71pcm. Northern Rock currently has a 2 year fixed rate at 2.79% which would mean a monthly payment of £1158pcm and a saving of £273pcm. Even by factoring in the lenders arrangement fee of £1000, this still saves you £5500 over the 2 years.

(Taken from Mortgage Strategy)

Barclays today launches an aggressive remortgage campaign to attract customers affected by other lenders’ recent SVR increases.

Barclays has cut its two-year fixed Great Escape remortgage product, which is available up to 70 per cent LTV, by 0.25 per cent from 3.74 per cent to 3.49 per cent to sweep up customers affected by recent SVR increases, and has also reduced its three-year fixed rate NewBuy mortgage by 0.2 per cent, from 5.69 per cent to 5.49 per cent.

It has also cut a selection of two, four and five-year fixed rates by up to 0.3 per cent between 70 per cent and 90 per cent LTV, with rates now starting at 3.09 per cent for a 70 per cent LTV two-year fixed.

Barclays’ head of mortgages Andy Gray says the lender cut its rates in order to attract customers with other lenders who have been told their SVR is to increase.

Last month, Santander said it would increase its SVR from 4.24 per cent to 4.74 per cent from 3 October. Since May, ING Direct, Bank of Ireland, Clydesdale and Yorkshire Banks, Co-operative Bank and Halifax all increased their SVRs. In total, it is estimated around 1.2 million customers will be affected by these SVR increases.

Gray says: “With the recent changes in SVRs, there is an opportunity to re-stimulate the remortgage market and save people money at a time when they need it most. This is why we have made these cuts.

“We have decided to take advantage of what are better funding conditions now, with the launch of the Funding for Lending scheme.”

At the same time, Barclays has also has slashed its retention mortgage rates by 0.5 per cent to keep its existing customers on its books. The lender is offering its fixed and tracker customers who have three months of their mortgage term remaining a fee-free two-year fixed rate at 2.79 per cent up to 95 per cent LTV and a fee-free five-year fixed rate at 3.49 per cent up to 95 per cent LTV in order to retain their business.

These rates are changed month-by-month and have been cut from 3.19 per cent for the two-year product and 3.99 per cent for the five-year product, both of which were on offer to customers last month.

Lentune Mortgage Consultancy director Stuart Gregory says: “These retention rates are fantastic. For a borrower to be able to secure a rate like this for five years would be phenomenal. Other lenders could learn a lot from this, it shows Barclays really wants to hold onto and help its customers.”