Barclays launches lowest ever mortgage
Competition to attract homeowners looking to take shelter from interest rate rises for the next decade has intensified, with a bank launching the lowest 10-year fixed mortgage rate that experts have ever seen.
Barclays has now cut the rate on a 10-year mortgage deal it is offering from 3.45% to 2.99%. Borrowers will need a deposit or equity of at least 40% to take out the deal, which also comes with a £999 fee.
Financial information website Moneyfacts, whose records go back 21 years, said the rate was the lowest it has ever seen on a 10-year fixed-rate mortgage.
The number of 10-year fixes on the market has surged over the last year, with 77 products now on the market compared with only eight a year ago, according to Moneyfacts' figures.
With expectations that the Bank of England base rate will move off its historic 0.5% low at some point in the coming months as the economy recovers, lenders are preparing for a wave of homeowners, many of whom may be sitting on a standard variable rate (SVR), to react by jumping onto a new deal.