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 and TSB Cut Mortgage Rates by Up to 50bps
Barclays and TSB are set to reduce mortgage rates tomorrow, with cuts of up to 40 basis points at Barclays and up to 50 basis points at TSB. The reductions affect both residential and buy-to-let mortgage products.
Barclays is implementing widespread rate reductions across its residential remortgage and buy-to-let deals. The largest cut at Barclays is on a fee-free two-year fixed buy-to-let remortgage at 75% loan-to-value (LTV), which will decrease by 40 basis points from 5.5% to 5.1%. Several other buy-to-let deals at Barclays will see reductions of more than 25 basis points, alongside some smaller cuts. Residential remortgage rates at Barclays are also being reduced by up to 20 basis points.
However, Barclays will be withdrawing its existing customer reward two-year offset tracker at 75% LTV, which had a pay rate of 5.08% and a £1,999 fee.
TSB is making substantial rate cuts of up to 50 basis points, with the sharpest reductions on buy-to-let and portfolio buy-to-let products. Two-year fixed rates for buy-to-let purchase and remortgage products between 60% and 75% LTV will be cut by 50 basis points. Within TSB’s residential range, two-year fixed house purchase products, including affordable housing products, will be reduced by 10 basis points. Three-year fixed house purchase products up to 85% LTV will be cut by up to 30 basis points, and five-year fixed house purchase products, including affordable housing products, will be reduced by up to 15 basis points.
These changes may impact letting agents and inventory clerks by influencing landlord and investor activity in the buy-to-let market, as well as affecting remortgage and purchase decisions for residential clients.
Source: Mortgage Strategy