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.