Barclays announces new rules for customers in 'huge relief' for account holders

Barclays has slashed mortgage rates in a change to accounts - with the move branded a "huge relief" for customers up and down the country. Products with the biggest cuts include a two-year fixed with £899 product fee - 60 per cent loan-to-value (LTV), min loan £5k, max loan £2m - reduced from 4.98 per cent to 4.67 per cent

A two-year fixed with £899 product fee - 60 per cent LTV, min loan £5k, max loan £2m - reduced from 4.99 per cent to 4.68 per cent - has also been reduced. A t Two-year fixed with £899 product fee - 75 per cent LTV with a product fee, min loan of £5k, max loan of £2m - has been reduced from 5.05 per cent to 4.75 per cent.

Riz Malik, Director at R3 Mortgages, said: "Barclays is the first lender of the week to improve selected mortgage products but my suspicion is that it won't be the last. Expect further reductions from other high street and specialist lenders this week given improving market pricing.

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"The improvement in SWAPs is great news for borrowers.” Simon Bridgland, Broker/ Director at Release Freedom, told Newspage: "Barclays have launched some sizzling hot fixed rates to match the start of the long-awaited summer sun.

"More lenders will follow suit this week with their rates melting away in the heat. Things look set to heat up not just in our skies but in mortgage rates, too. Expect more lower fixed rates to continue to appear in the days ahead.”

And director at EHF Mortgages, Justin Moy, said: "Barclays have made a positive start this week, passing on Swap rate improvements to those looking to buy a new home. With cuts across their purchase range, it is likely that other lenders will follow a similar pattern. But keeping remortgage and existing borrowers paying higher rates won't please the majority of borrowers.”