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 (1049 views)
Add Comment
Report Article


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.

Tuesday, October 6, 2009 01:17PM Report Comment

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.

Tuesday, October 6, 2009 02:26PM Report Comment

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. )

Tuesday, October 6, 2009 02:29PM Report Comment

4. 51ck-6-51x said...

jack c - that is interesting, could you expand?

Tuesday, October 6, 2009 02:30PM Report Comment

5. jack c said...


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.

Tuesday, October 6, 2009 02:41PM Report Comment

6. 51ck-6-51x said...

jack c, but does the same apply for the consumer? Maybe they just don't like brokers?!

Tuesday, October 6, 2009 03:04PM Report Comment

7. jack c said...


They are equally as poor (IMO/experience) with direct applications - to be avoided like the plague.

Tuesday, October 6, 2009 03:10PM Report Comment

8. str 2007 said...

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 ?


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 ?

Tuesday, October 6, 2009 03:27PM Report Comment

9. str 2007 said...

Apologies for all those typos and spelling mistakes. Typing too fast and not checking, naughty boy.

Tuesday, October 6, 2009 03:29PM Report Comment

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.

Tuesday, October 6, 2009 05:17PM Report Comment

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.

Tuesday, October 6, 2009 07:32PM Report Comment

12. str 2007 said...

Cheers Jack

I'll beware.

Tuesday, October 6, 2009 09:38PM Report Comment

Add comment

  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines
Admin Password
Email Address

Main Blog | Archive | Add Article | Blog Policies