While some lenders are cutting their remortgage interest rates for those with large equity or deposit amounts, others are going after the large number of homeowners anxious to make a deal but with smaller equity and/or deposit levels.  Barclays has given notice that they are going to lower the interest rate on some of their popular mortgage offerings by up to 0.3%.  They are also introducing a five year fixed rate deal at 4.89% for those with smaller deposit levels.  The below 3% deal that has been popularly offered by many lenders is showing up at Barclays as well with a 40% deposit deal dropping to 2.89% for a 2-year fixed rate with a £999 application fee and only £499 for those customers who qualify for the Barclays loyalty mortgage.

Andy Gray, Head of Mortgages at Barclays said, “This is the second time in less than a month that we have made cuts to our mortgages and is due to a highly competitive market with lenders making several reductions in the last few weeks. This is great news for borrowers who are getting access to some really low rates. We would encourage people to act now and review their mortgage to see if they stand to save money by remortgaging.

“For those with smaller deposits who need the security of fixing our new five year deal gives consumers purchasing a house or existing borrowers who need to remortgage a great deal. A borrower with a mortgage of £150,000 would pay £867 a month. For those with larger deposits, but who are uncertain what to do with the recent speculation over the future direction of base rates, Future Fix could be just the product for them. This provides the flexibility and low cost of tracking base rate now with the certainty of a fixed rate in the future."