A sub-4% mortgage rate has returned to the market, with Barclays introducing new deals for eligible borrowers. The move is believed to mark the first fixed-rate product of its kind currently available.
From today, the lender is offering a range of new purchase-only products, including a two-year tracker starting at 3.96% for Premier customers. The deals are available at up to 75% loan-to-value, meaning borrowers will need at least a 25% deposit.
Access to the lowest rates is limited to Barclays Premier customers, who must hold a current account with the bank and either have a gross annual income of £75,000 or £100,000 in savings or investments, or a combination of both.
The launch marks a return to sub-4% pricing in the mortgage market, albeit on a restricted basis. It raises the question of whether other lenders will follow with similar reductions if market conditions allow.
Nicholas Mendes of John Charcol commented: “We may still see selective mortgage rate cuts where individual lenders want to compete, or where swap rates ease. But I would expect any reductions to be patchy rather than a broad shift across the market.”
Alongside the tracker product, Barclays has also introduced a five-year fixed rate at 4.93% with no fee at 80% LTV for purchases. For remortgage customers, new deals include a two-year fixed rate at 5.08% and a five-year fixed at 4.80%, depending on loan-to-value and product fee structure.
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