11 July: Competition Intensifies Ahead Of Bank Rate Cut
Barclays is cutting selected fixed rates for residential purchase and remortgage by up to 0.33 percentage points, laying the gauntlet down to other lenders with its table-topping rates, writes Jo Thornhill.
The latest reductions will push Barclays five-year purchase fixed-rate to the top of the best buy tables with a rate of 4.09% (60% loan to value) with an £899 fee. Barclays Premier banking customers can secure the same deal at a rate of 4.08%.
Barclays has also slashed remortgage rates and is offering two-year fixed rates from 4.70% (4.67% for Premier banking customers) with a £999 fee (60% LTV) and equivalent five-year rates from 4.36% (4.31% for Premier customers).
Coventry for Intermediaries has cut selected residential fixed rates by up to 0.18 percentage points and deals across its buy-to-let range by up to 0.15 percentage points.
The new rates, available through brokers, include a five-year fixed rate for residential remortgage at 4.34% with a £999 fee (65% LTV) or at 4.45% (75% LTV).
Its buy-to-let deals start from 4.72% for a five-year fixed rate. This deal has a £1,999 fee and is available at 65% LTV. There is an equivalent five-year deal at 4.77% with no fee.
Accord, the specialist lending arm of Yorkshire building society, has cut selected residential fixed rates by up to 0.25 percentage points. The largest reductions are on deals for borrowers with a 10% deposit (90% loan to value). The lender is offering a five-year fixed rate for home purchase at 90% LTV at 5.14% with a £995 fee.
First Direct has cut selected two, three and five-year fixed rate deals for purchase by up to 0.17 percentage points. The direct-only lender is offering a five-year fixed rate for home purchase at 4.31% with a £490 fee. This is for borrowers with at least a 40% cash deposit towards their property purchase (60% LTV).
Two-year equivalent fixed rates for purchase at 60% LTV now start from 4.73%, while three-year rates start from 4.64%.
The biggest rate reduction has been made on the lender’s two-year fixed rate for purchase at 85% LTV, which has been reduced by the full 0.17 percentage points from 5.16% to 4.99%. This deal has a £490 fee.
MPowered Mortgages has cut its two-year fixed rate mortgage deals for residential purchase by up to 0.13 percentage points. It is offering rates from 4.63% with a £999 fee (60% LTV), or from 4.89% with no fee.
Virgin Money (including Clydesdale Bank) has cut its standard variable rate (the interest rate borrowers revert to after a fixed or tracker deal comes to an end unless they switch to a new deal) from 9.49% to 9.24%. It is one of the highest SVRs on the market. The market average SVR is 7.87%, according to Better.co.uk.
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