Barclays Update

Barclays: NEW 90% FTB rates (inc. New Build) and rate reductions

Great News – we’re launching new 90% LTV First Time Buyer products and making a selection of rate reductions across our Residential Purchase and Remortgage ranges, effective tomorrow, Friday 11th December, 2020

90% LTV Purchase rates – available for First Time Buyers, including New Build houses

We’re pleased to launch two new 90% LTV 5 Year Fixed rate First Time Buyer products. These products are exclusively available to support your First Time Buyer clients – defined as those applicants who have not previously held a mortgage (in the UK or abroad).

Further details – 90% LTV First Time Buyer rates:-

• For joint applications, both applicants need to qualify as a First Time Buyer (FTB)
• Joint Borrower Sole Proprietor is an exception. Only the proprietor is required to be a FTB
• Allowable properties – 90% LTV rates are available for all house purchases (including New Build), up to a maximum loan size of £500k, and Flats and Maisonettes (excluding New Build*), up to a maximum loan size of £220k
• Loan to Income is available up to 4.49x. It’s important to complete a DIP to ascertain the maximum available lending for your client/s, as this could be lower

*Barclays’ definition of a ‘new build’ is a property that was first registered two or less years ago OR the property is subject to first sale by the developer, regardless of time or any rental usage in the interim. This also applies to newly converted properties. Maximum LTV is 90% for new build houses and 85% for new build flats and maisonettes.

Additional ‘Key Product’ changes

As well as launching 90% FTB purchase rates, we are also making changes across our residential new lending range, including rate reductions of up to 0.16% on a selection of our existing 75%, 80% and 85% LTV 2 and 5 Year Fixed Purchase and Remortgage products

Please see below for details of all products both changing and launching

90% LTV First Time Buyers (Purchase)

• NEW 3.65% 5 Year Fixed £999 fee, 90% LTV, Loans £5k –  £500k
• NEW 3.79% 5 Year Fixed  £0 fee, 90% LTV, Loans £5k – £500k

Purchase and Remortgage

• 2.12% 2 Year Fixed £999 fee, 80% LTV, Loans £5k – £2m will reduce to 2.08%

Purchase

• 2.99% 2 Year Fixed £999 fee, 85% LTV, Loans £5k – £2m will reduce to 2.83%
• 1.88% 5 Year Fixed £999 fee, 75% LTV, Loans £5k – £2m will reduce to 1.78%
• 3.11% 5 Year Fixed £999 fee, 85% LTV, Loans £5k, Max loan £2m will reduce to 2.95%
• 3.36% 5 Year Fixed £0 fee, 85% LTV, Loans £5k – £2m will reduce to 3.32%

Remortgage

• 2.30% Great Escape 2 Year Fixed £0 fee, 75% LTV, Loans £50k – £2m will reduce to 2.19%
• 1.70% 5 Year Fixed £999 fee, 75% LTV, Loans £5k – £2m will reduce to 1.67%
• 2.95% 5 Year Fixed £999 fee, 85% LTV, Loans £5k – £2m will reduce to 2.82%

Please view our new Intermediary rate sheet, effective from tomorrow.

Key product change timings confirmed

• Existing products: Final date for generating a Mortgage Information Sheet (MIS) Thursday 10th December, 2020
• Last new lending applications on withdrawn products: Saturday 19th December, 2020

‘Tis the season to be busy
With less than 80 working days until the Stamp Duty holiday deadline of Wednesday March 31st, we continue to see strong demand within the purchase market, contrary to the seasonal slow-down we’d typically start to experience at this time of year.

During this busy time, it’s imperative we not only manage our customers and clients expectations around aspirations for speedy completions, but we also work closely together to ensure we are working as efficiently as possible.

To help you achieve a better processing experience, we have produced some very simple tips for when submitting either employed and self-employed applications.