Barclays has reduced the rate of a five-year fixed mortgage at 60% loan to value (LTV) to 3.96%, down from 3.99%.
This product, which is available to borrowers purchasing an energy-efficient new-build home directly from a builder or developer, has an £899 fee and is eligible against homes with an energy-efficiency rating of 81 or above or that are in energy-efficiency bands A or B. Barclays claims it is the lowest five-year fixed mortgage rate on the market.
The corresponding five-year fix for standard purchases now has a rate of 4.06%, a reduction of 0.03%.
The lender has also cut other rates by as much as 0.48%, such as its fee-free two-year fix at 90% LTV, which is now priced at 4.93%.
Across its high-LTV borrowing options, the two-year fix at 90% LTV with an £899 fee has been cut from 5.01% to 4.74%, while a corresponding five-year fix has fallen from 4.74% to 4.62%.
Its two-year fixed mortgage guarantee product at 95% LTV has gone down from 5.45% to 5.28%, while the five-year fix has dropped from 5.23% to 5.03%.
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Additionally, Barclays has increased the maximum available loan for borrowing at 90% LTV to purchase houses and flats. This has risen from £570,000 to £640,000 for houses and £275,000 to £310,000 for flats.
These changes will take effect on 4 March.
Sian McIntyre, managing director of mortgages and savings at Barclays, said: “With bills and costs rising, we know how challenging homebuyers are finding things right now. We’ve introduced several rate drops already this year across our mortgage range, making a real difference in affordability, and we’re delighted to announce more rate cuts.
“This includes bringing our Green Home mortgage even further below 4%, making it the lowest five-year fixed rate available on the market.”
