Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Barclays joins wave of repricing with 20bps rate hikes
Barclays is raising rates by 20 basis points across its residential purchase range from tomorrow, hitting 39 purchase-only deals. The move comes amid a second wave of repricing by major lenders this month, with five of the largest lenders having raised rates yesterday for the second time since the start of September.
Key rate changes at Barclays
Among the changes, Barclays' market-leading two-year fixed at 60% LTV with a £899 fee will jump from 4.55% to 4.75%. A three-year fixed at 95% LTV with a £899 fee will rise from 5.16% to 5.36%, while a five-year fixed at 75% LTV with a £899 fee is increasing from 4.9% to 5.1%.
Widely expected move
Trinity Financial product and communications director Aaron Strutt said the Barclays rate changes were widely expected, seeing as all of the other major lenders raised their rates the previous day. He added that it looks like the bank has raised many of its rates so they are over 5%, which the firm had hoped would not happen despite the economic tensions.
What it means for agents and clerks
For letting agents and inventory clerks, the repricing wave signals tightening affordability in the purchase market. With several of Barclays' fixed deals moving above 5%, prospective buy-to-let landlords and first-time buyers may face higher borrowing costs, which can affect purchase timelines and tenant demand in the sales and lettings pipeline. Agents advising clients on financing should be aware that lender rates are shifting quickly this month, with multiple major lenders repricing since the start of September.
Source: Mortgage Strategy