Mortgage price news with Trinity Financial

Mortgage price war hots up as Barclays undercuts rivals with 3.83% deal

The cost of funding mortgages has been steadily coming down, particularly after the Bank of England's base rate reduction to 5%, and we have been waiting for the lenders to pass on the price cuts.

Barclays new 3.83% five-year fix is available to new and existing higher earning 'premier customers' although its standard five-year fix is only marginally higher at 3.84%. Both rates have an £899 product fee, and they are available to applicants buying a home with a 40% deposit. The rates are available for mortgages between £5,000 and £2 million. Barclay's new three-year fix at 4.01% also looks like good value for money.

HSBC’s new and lowest rates are available to first-time buyers and home movers borrowing between £25,000 and £5 million. The five-year fix for 'premier customers' is 3.92%, and it has a £1,499 fee. The standard five-year fixed rate is 3.95%, with a £999 arrangement fee and applicants will need a 40% deposit to qualify. The minimum loan size is £25,000 and the maximum loan size is £5 million.

Good news - rates are coming down

It is good news for homebuyers that banks and building societies are lowering their rates as two and five-year fixes are looking so much better value for money. The lenders are still fighting it out for business and we expect the price war to continue. If you are looking for a mortgage, it really pays to shop around now. Other lenders may well lower the price of their mortgages over the coming days.

What about two-year fixes?

Many borrowers are not keen to lock into a mortgage for five years because they think rates will come down. HSBC's two-year fixed rate is 4.41%, with a £999 arrangement fee. Barclays's two-year fix has been lowered to 4.42%, with an £899 production fee. Applicants will need a 40% deposit to qualify for these rates.