Barclays warns customers 'your home could be repossessed' in new rules

Barclays warns customers 'your home could be repossessed' in new rules
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Barclays has followed Nationwide and Santander in bringing in new rules for customers. Barclays has become the latest lender to cut the length of time mortgage borrowers have to lock in a new rate before their current deal expires.

Barclays is now reducing this six-month period to three months, citing calmer market conditions. This follows similar moves by Halifax, Lloyds, Nationwide and Santander. Fixed-rate mortgage deals have been getting steadily cheaper over the past couple of months.

Two- and five-year fixes for those looking to remortgage currently start from 4.14% and 3.88% respectively. Some major lenders we asked are still offering six-month product transfer periods, though they are in the minority.

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On its website, Barclays warns: "See the exclusive rates you could switch to for your home or buy-to-let mortgage. Your home may be repossessed if you do not keep up repayments on your mortgage." It adds: "Arrange to switch up to 180 days before your current rate ends, or switch now if you’re already on our follow-on rate.

"We don’t need to do an income and affordability assessment if you’re not making any other changes to your mortgage and your circumstances haven’t changed in a way that impacts your affordability. If you’re only switching your rate, we won’t charge any legal or valuation fees, although you might have to pay a product fee."

"We’ll help you choose a rate that suits your needs, and guide you through the process to borrow more, change your term or anything else. Just book an appointment," it says. It goes on: "You can switch your rate online or in the Barclays app – but please book an appointment if you’d like help to choose a rate or want to make other changes."

Locking in early prevents you from rolling on to your lender's standard variable rate (SVR) – likely to be around 7% to 8% – and can act as insurance against interest rates rising before your current deal ends.