Major High Street Bank Cuts Mortgage Rates In A Bid To Attract New Custom

03 December 2012 Categories: News

Major High Street Bank Cuts Mortgage Rates In A Bid To Attract New Custom

Major high street Bank, Barclays, have cut their buy to let mortgage rates in the hope of attracting new customers through the door. Experts at the bank have realised the significant contribution that the private rental sector now makes to the property market in the UK, and as a consequence they believe that making their buy to let products more competitive will result in better profits in the long run.

The reduced rates run across the entire range, and include up to 1.1% off their two year fixed deals. These mortgages now have an interest rate of 4.19% (down from 5.29%) for customers with a 25% deposit, and just 3.69% (down from 3.88%) with a 40% deposit.

Managing director of Mortgages at Barclays, Andy Gray, commented on the new rates, saying “We know that two year fixed rates requiring a 25 per cent deposit have been proving immensely popular with investors and landlords looking for certainty with their mortgage repayments. We’ve slashed the rate for these borrowers with a smaller deposit, making it the best deal we’ve offered at 75 per cent LTV since we launched in November last year. These new products will help customers to save money and make investment in the buy-to-let market more affordable.”

It is now hoped that other high street banks will follow suit.