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Barclays Mortgage Ranks Continue To Decline

by Jim ONeil on July 22, 2011

in Mortgages

As the UK housing market settles into what seems to be a long-term slump, many lenders are continuing to slash their mortgage loan rates. Barclays is one of the most recognized names in regional banking and it is no exception to this trend.

In fact, the financial institution is reducing rates on one-third of its Woolwich tracker and fixed home loans.

Even a Barclay remortgage loan called Great Escape is receiving some positive changes. To assist homeowners with smaller deposits, the loan to value amount has been increased to 85 percent.

There is no fee to apply for the Great Escape and being approved for this remortgage can help homeowners take advantage of existing cheap loans APR.

Barclays head of mortgages Andy Gray commented that the bank does not know how long record low interest rates will be available. He encouraged homeowners to compare their existing mortgage against current offerings.

He also recommended that borrowers lock in low rates now to “protect themselves against future base rate increases.” There is speculation that the base rate will increase soon.

Mr. Gray provided one example of the potential savings for existing homeowners. For a £150,000 mortgage, switching from a 4.69 percent SVR to a fixed two-year loan could save approximately £5,400 over the two-year period.

A £4,300 savings could be realized if the loan is fixed for five years. He said that these cost savings are much-needed at this time, due to tightened household budgets.

Barclays is just one UK lender reviewing and making changes to the costs of its mortgage loans. The goal is to better serve UK borrowers, in an attempt to stimulate the market.

Fixed interest rate deals currently offer the largest amount of cost savings. Whether an individual is buying or considering remortgaging, these should be investigated.

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