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Barclays unveils no-fee 10% deposit Woolwich mortgage deal

Barclays plans to roll out fee-free 90% mortgages from tomorrow.

Through its mortgage arm Woolwich, Barclays will offer buyers with a 10% deposit a three-year fixed deal at a rate of 4.99% and no fee.

Also included in the new range is an application fee-free 90% LTV (loan-to-value) five-year "loyalty" mortgage, for customers who hold a Barclays current account, at a fixed rate of 5.49%. Borrowers who do not qualify need to pay a £499 fee.

All the deals revert to a lifetime tracker of 3.39% above the base rate after the fixed rate period ends.

The deals come at a time when the struggle for first-time buyers to get on the property ladder and soaring rents have been highlighted.

Rightmove's Consumer Rental Forecast found this week that 55% of tenants in the rental sector are "trapped renters" - those who would like to buy but cannot afford to.

Mortgage lenders have been ramping up the competition as the Bank of England keeps the base rate at a historic 0.5% low.

Comparison website Moneyfacts said there are 256 maximum 90% LTV mortgages on the market, up from 206 a year ago and more than double that of two years ago, when consumers had only a choice of 101 mortgages.

Moneyfacts said that a year ago, there was only one maximum 90% LTV three-year fixed mortgage with a rate of under 5% - and now there are 16 three-year fixed rate mortgages under 5% and one below 4%.

A Moneyfacts spokeswoman said: "Any additional maximum 90% LTV introduced to the market is good news for customer choice, as higher loan-to-value mortgages have tended to be few and far between and expensive.

"This new three-year fixed-rate deal has no arrangement fee and has a rate below 5%, which is good news for those with limited equity in their property and looking to move home.

"The fact that this new deal requires only a 10% deposit will be welcome news for borrowers."

Andy Gray, head of mortgages for Barclays, said the lender recognised the importance of supporting the first-time buyer market.

He said higher LTV mortgages with more competitive rates have started to come through this year and Barclays' deals would encourage home buyers and remortgage customers.

Belfast Telegraph


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