Barclays will be increasing rates by up to 40 basis points tomorrow on many of its products, while also trimming prices on some deals.
The lender is raising scores of existing customer rates on residential deals for purchase and remortgage.
Many of its most substantial increases are on two-year fixed rates, such as 75% LTV fix at 4.81% with no fee, which will rise by 40bps to 5.21%.
A number of other two-year fixes will rise by the same margin and there are further price hikes of between 14 and 35bps across its existing customer range.
Rate reductions include the bank’s purchase springboard five-year fixed at 100% loan-to-value (LTV) with no fee, which will be cut from 5.64% to 5.54%. This has a minimum loan of £5k and a maximum loan of £500k.
Within Barclays‘ purchase and remortgage range, the two-year offset tracker at 75% LTV with a fee of £1,749 will be trimmed from 4.97% to 4.82% and the five-year offset tracker at 75% LTV with a fee of £1,749 will be lowered from 5.00% to 4.85%.
These both have a minimum loan of £5k and a maximum loan of £2 million.
This comes after Barclays pushed prices by up to 55 basis points last week, with widespread rate increases across both buy-to-let and residential products.
Existing customer deals and new business rates also saw price hikes.
Commenting on this, Trinity Financial product and communications director Aaron Strutt says: “Most of the big lenders have raised their rates again so we have pretty much had another full round of mortgage price hikes over the last few days. The swap rate market has been calmer, but we are not expecting to see cheaper rates available until the war in the Middle East stops.”
“These latest Barclays price hikes are not pretty, especially with most of the new fixes either priced just below or above 5%. Nationwide, NatWest and Halifax have the cheapest two-year fixes at the moment priced around 4.80%.”
“The only bit of good news is that Barclays does not appear to be pulling its tracker rates, and as they start from 4% they are 1% lower than the fixes. Borrowers could take a tracker, switch to a fixed rate when they see a decent deal and hope the base rate at least stays the same for a while.”
