Barclays will today launch a range of new mortgage products, including a new lowest home loan rate on the market, just 24 hours after Nationwide released the first sub-3.75% deal.
Barclays will today introduce a five-year fix at 3.71% for those buying their home with a 40% deposit. The deal will come with an £899 fee, and is cheaper than Nationwide’s 3.74% five-year fix, launched yesterday.
An even cheaper option at 3.7% is available but only for premier customers of the bank. Brokers said that lenders were “gently easing pricing as they compete for business.”
Nationwide still offers the cheapest two-year deal on the market at 3.89%.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “No sooner does one lender offer a sub-3.75% five-year fix, then another joins the fray, with Barclays launching a market-leading 3.71%.
“The clear direction of traffic for mortgage rates is downwards, with lenders gently easing pricing as they compete for business.
“We don’t expect any dramatic reductions going forward but nevertheless, subtle improvements in rates will make life easier for borrowers.”
Mortgage rates have falling in recent months on the expectation of further Bank of England interest rate cuts.
Bank of England’s Bailey expects interest rates to fall
