Tuesday, Oct 06, 2009
Barclays Cuts the Cost of Popular Mortgage Deal
E1 News: Barclays Cuts the Cost of Popular Mortgage Deal
The Times reported yesterday that one of the largest UK lenders - Barclays - announced a 0.45% cut in the interest rate on a mortgage deal that is considered the most popular among banks' borrowers. Moreover, the bank said it will remove the restrictions previously imposed on mortgage loans.Barclays' lifetime tracker deal, offered earlier at 3.24% will now cost borrowers 2.79%, which is 2.29% above the base rate of 0.5%, set by the Bank of England. Borrowers with a min. 30% deposit will be able to benefit from the reviewed deal, which includes a £999 fee and a 1% early termination fee during the first 2 years.
Posted by uch1405 @ 11:03 AM (690 views) Add Comment
12 Comments
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1. jonb said...
I thought 5 year fixes were the most popular loans for borrowers.
Reducing tracker rates can only mean that they think base rates are going to rise soon.
2. jack c said...
This product is via the Woolwich brand and anyone having to deal with this company will (in my experience) run the risk of suffering a nervous breakdown as part of the application process.
3. 51ck-6-51x said...
jonb said "Reducing tracker rates can only mean that they think base rates are going to rise soon."
- nope, nothing to do with it! The competition to this product is other such trackers; if rates rise the product rate rises, but so do all those products with which this one is in competition.
They reduced the spread over base of their tracker because their funding is no longer as expensive and they wish to compete for some business ( the market being those potential borrowers with >30% deposit, and some, externally unknown, credit score. )
4. 51ck-6-51x said...
jack c - that is interesting, could you expand?
5. jack c said...
@51ck-6-51x
I'll stick my neck on the line here and say if you had a straw poll of mortgage brokers on who has been the worst company to deal with over the last 5 years Woolwich would come top of the list by a long way. I know many (fair minded and sensible) people who blacklisted them.
6. 51ck-6-51x said...
jack c, but does the same apply for the consumer? Maybe they just don't like brokers?!
7. jack c said...
51ck-6-51x
They are equally as poor (IMO/experience) with direct applications - to be avoided like the plague.
8. str 2007 said...
666
This product is not for 30%+ deposits.
15% deposit qualifies.
Re: the credit score. Excellent in WOolwich books is 850 out of 1000 with experian. which will qualify you for 5 x joint
A less than perfect score below 850 will qualify you for 4x joint salary.
I probably should look mine up with experian & tell you if it's correct. But I'd have to pay so maybe not but does anone else know there's on the experian scale and want tyo let us know if it's an accurate reflection ?
Jack
From the other link. I'm probably not going to raise funds, but if the right house cam e up.
From time to time it's worth checking lending multiples, because people will borrow to the max and I think we're all fairly well agreed it's the lending that's created the bubble.
Therefore I do see this as the most important criteria.
At the end of the day if unemployment went to 4 million 85% of people would still have jobs and be able to buy houses.
I am interested to know what problems Woowich throw up though because if you tell the truth when applying and don't have a string of debt or credit cards you failed to tell them about - why would they turn you down ?
9. str 2007 said...
Apologies for all those typos and spelling mistakes. Typing too fast and not checking, naughty boy.
10. str 2007 said...
Apologies on this, I was told that 15% deposit is all that's required for this, however when looking on the calculator only 6.99% deal comes up for 15% deposit.
More product training required for Woolwich sales people me thinks.
11. jack c said...
str 2007 - you are running into brick walls already with The Woolwich - trust me they are a shower of sh*t and not to be touched with a barge pole !
Just wait until you send them copies of your bank statements and evidence of earnings three times over and they lose the lot in the system and the house purchase falls through because of the delays.
12. str 2007 said...
Cheers Jack
I'll beware.