Following HSBC's announcement of crucial changes in its mortgage rates and lending strategies, Barclays has also taken cue and decided to rejig the offerings for its customers of U.K.
The banking giant is not only cutting down mortgage rates up to 1 percent for new home investors, but is also introducing fresh mortgage plans for customers holding a minimum of 5 percent deposit with the bank, reports Property Wire.
The bank's brand new mortgage scheme is being called "The Family Springboard Mortgage" where a borrower will be granted a 3-year fixed mortgage deal at 4.69 percent. Meanwhile, one of the borrower's family members is required to deposit around 10 percent of the property's price in a Barclay's account. The member will get back all the savings after the three years given all the pending payments are done on time. An annual interest of 1.5 percent will be generated on the deposited amount, reports Mortgage Strategy.
For customers with 30 percent deposit, a 3-year fixed rate deal with maximum reduction up to 2.85 percent will be offered. Those who hold a 40 percent deposit, a 2-year fixed rate deal will be offered at 2.39 percent, reports Financialreporter.
The reduced mortgage rates are the cheapest offers ever extended by the bank.
"This is a real boost for UK home buyers with small or large deposits as we are giving them access to the cheapest ever deals we've been able to offer, brought about by the combination of the low base rate and funding for lending scheme," Andy Gray, managing director of mortgages for Barclays told Property Wire. "We've listened to our customers and need to continue to drive confidence in the housing market, the new family scheme and today's slashed rates will encourage people to think about buying or moving home, which in turn will help the economy move forward.
"For existing home owners this is extra good news as they can still look to reduce their monthly outgoings by switching to cheaper rates" he said.
With the introduction of new schemes and revised mortgage rates, Barclays expects to revive the housing market of the country and boost its growth throughout the year.
