Here are the latest updates from Barclays. These products are available via our direct to lender mortgage club which offers you payment on completion and a lot more besides!
Important Barclays Product Update
Important changes – simplified documentation plus automated payslip verification
We’re pleased to confirm that we’ve reduced the amount of documentation that we will request from you to support your clients applications.
Our service levels are in a good position and these reductions – fully detailed below – will further speed up and simplify the application process making it even easier for you to do business with Barclays.
What have we changed?
Payslips requirements
- Allowances – we will now only require one month’s payslip for allowances, both fixed and variable.
- Applicants paid weekly – we are reducing the number of payslips for applicants paid weekly from 13 to 5 for all types of income*.
Bank Statements
- We’re removing the standard requirement for an applicant’s latest bank statement to verify employed income for cases with 85% LTV or less.
Please note: We may still request this document on certain cases at our discretion.
- For maintenance arrangements, we are reducing the documentary requirements from 12 months’ bank statements to the latest 3 months’ bank statements.
- For benefits, we are reducing the bank statements required from 3 months’ to the latest one month.
- For pensions currently being received, we will accept either:-
- the latest pension payslip, or
- latest bank statement accompanied by either a pension statement, annuity letter or P60
- We will no longer be requesting proof of background BTL mortgage payments on BTL applications.
Other requirements
- We no longer require an Employer’s Reference for applicants who do not have permanent rights to reside or have not lived in the UK for two years.
- For customers on paternity/maternity leave, we will now accept the applicant’s latest payslip together with their last received payslip, prior to taking leave.
Important: Details of the applicant’s intention to return to work (including expected return date, hours of work and remuneration), should continue to be provided in writing and uploaded with the payslips.
For full details of the documentation required to support applications, please view our updated Residential and Buy to Let packaging guides.
*13 payslips will still be required for applicants without permanent rights to reside or residency in the UK as proof of 3 months’ employment.
Coming soon – automated payslip verification
We’re pleased to confirm our systems will shortly begin automatically verifying payslips at the point of submission, removing the need for our underwriters to manually review them.
This is the first of a series of positive system enhancements being introduced over the summer to provide a speedier offer journey for you and your clients and we expect it to make a positive impact on the lead times to move to offer stage, especially with applications where only one payslip is required with no supporting documentation
Good news – there is no change in the process for you. Please continue to fully package your applications as you do today and we look forward to sharing more news of other planned changes in due course.
Thanks for your support
Barclays mortgage product changes
The market continues to remain competitive and following the latest review of our offering, we’re pleased to confirm a further raft of positive changes to products across our existing Residential, Buy to Let and Reward ranges, effective tomorrow, Friday 9th July, 2021, together with some information on how we are simplifying our assessment process for your residential clients with background rental properties.
Summary of changes
A remortgage summer bonanza
Analysis of the market from CACI data shows between July and August alone, circa £35.8bn of Residential and Buy to Let balances will mature from an existing product and with many of these customers likely looking for a new deal, we’re making reductions of up to 0.20% across our current 2, 3 and 5 Year Residential Fixed rates (including Great Escape) plus our 2 and 5 Year Buy to Let Fixed rates.
A strong purchase market
Purchase market activity is holding up strongly and with the expectation that this will continue, we’re also reducing a number of products across our existing Residential Purchase fixed rate range which includes a reduction of up to 0.27% on both our 90% LTV 2 Year Fixed rates and a 0.10% reduction to our Mortgage Guarantee Scheme (MGS) 2 Year Fixed and a 0.20% reduction to our MGS 5 Year Fixed.
Full support for your existing Barclays mortgage clients
Finally, to support you service your existing Barclays mortgage customers looking to seamlessly rate switch or take further borrowing, we’re reducing many of our fixed rates across our range of Residential and Buy to Let Reward products.
Please see below for some of the key change highlights and please review our rate overview guide for full details of all product reductions.
Reduced Residential Remortgage products
- Reduced – 1.45% 5 Year Great Escape Fixed, £0 fee, 60% LTV, Loans £50k – £2m – reducing to 1.34%
- Reduced – 1.41% 5 Year Fixed, £999 fee, 75% LTV, Loans £5k – £2m – reducing to 1.32%
Reminder – Our Great Escape products come with a free non-disclosed valuation, free legals plus £250 cashback or £350 if your client opts to use their own solicitor.
Reduced Buy to Let Remortgage products
- Reduced – 1.98% 5 Year Fixed, £1,795 fee, 75% LTV, Loans £35k – £1m – reducing to 1.85%
Reduced Residential purchase rate
- Reduced – 3.07% 2 Year Fixed, £0 fee, 90% LTV, Loans £5k – £570k – reducing to 2.80%
- Reduced – 2.87% 2 Year Fixed, £999 fee, 90% LTV, Loans £5k – £570k – reducing to 2.60%
- Reduced – 3.59% (MGS) 2 Year Fixed, £0 fee, 95% LTV, Loans £25k – £570k – reducing to 3.49%
Reduced Residential product transfer and further borrowing Reward rates
- Reduced – 0.99% 2 Year Fixed, £1250 fee, 60% LTV, Loans £5k – £2m – reducing to 0.95%
- Reduced – 1.29% 3 Year Fixed, £999 fee, 60% LTV, Loans £5k – £2m – reducing to 1.12%
- Reduced – 1.17% 5 Year Fixed, £999 fee, 60% LTV, Loans £5k – £2m – reducing to 1.12%
For full details of all product reductions, please view our Rate Overview Guide. Please also view our updated Intermediary and Reward rate sheets, for full details of all our lending products, effective from tomorrow.
Key product change timings
- Existing products: Final date for generating a Mortgage Information Sheet (MIS) Thursday 8th July, 2021
- Last rate switch (product transfer) applications on existing Reward range products: Friday 9th July, 2021
- Last new lending applications on existing products: Saturday 17th July, 2021