Barclays Update

Barclays Mortgage Policy Changes

We regularly review our policy to ensure we’re delivering the right outcomes for customers. Please see below for key changes effective from today, Thursday 12 October.

Limited Liability Partnership (LLPs)

Financial Accounts for LLP’s (Residential and Buy to let)

From today, we will begin to request the latest two year’s financial accounts where the applicant is an equity partner in the firm and has a profit share entitlement of 20% or more.

Transactions at undervalue

We’ve expanded the list of acceptable relationships between vendor and purchaser to include landlords selling to their tenant(s). This means we can now consider lending up to 95% of the discounted purchase price where your client is buying from their landlord but the LTV for product purposes is based on the higher market value.

Please submit applications of this nature under the ‘family sale’ special scheme option. The Loan-to-value for product eligibility purposes should be calculated using the valuation figure.

Explore our full mortgage policy

Barclays mortgage product changes

We are pleased to confirm we are further reducing rates by as much as 20 basis points on a selection of products across our Residential and Buy to Let new lending and Reward ranges, effective from tomorrow, Wednesday 18 October.

Key residential remortgage product change highlights

Reduced -5 year Fixed 999 product fee, 85% LTV, Min loan 5k, Max loan 2m will be reducing from 5.63% to 5.43%

Reduced – 5 year Great Escape Fixed 0 product fee, 85% LTV, Min loan 50k, Max loan 2m will be reducing from 5.85% to 5.65%    

New – 5.24% 5 year Fixed 999 product fee, 60% LTV, Min loan 5k, Max loan 2m  – available for Barclays premier qualifying customers only

For more information, including details of one product withdrawal, please view our rate overview guide and you can access the full range of Barclays mortgage products, effective from tomorrow, within our updated Intermediary and Reward rate sheets.

Product withdrawal timings

To qualify for a product, a MIS needs to have been generated, on or before the date of withdrawal (Tuesday 17 October) either using our Barclays systems or your preferred sourcing tool and must be submitted prior to the last application date Wednesday 18 October for Product Transfers and Thursday 26 October for new lending applications.

Please be advised that upon withdrawal, the products will be removed from the dropdown options within our application services. Therefore, for new lending applications you will need to ensure the product has been selected and saved in the application today (you then have until Thursday 26 October to secure a case booking and submit).

Barclays update – moving from hard to soft credit checks

Here at Barclays, our ongoing commitment to improving the broker experience continues – at pace – thanks to the valuable feedback received from our intermediary partners.

These insights enable us to focus our attention on solving the issues that matter in your day-to-day lives and across your business.

So, what’s next in our strategic change plan?

We’re pleased to announce that we’ve totally revamped the way we complete our Decision in Principle by moving from hard to soft credit checks

This means that all applications will now go through a soft credit check at the initial Decision in Principle stage rather than a hard credit check, as was formerly the case.

This enhancement will help to improve the customer experience when applying for a new mortgage application with Barclays as it will provide you and your clients with an accurate lending decision at initial stage without impacting the customers credit file.

This is a change which also brings us in line with other tier one lenders across the industry.

What happens now?

You don’t have to do a thing; these changes have been automatically applied to the system.

Please note that a hard credit check will still be conducted on submission of the mortgage application and recorded on the customers credit file.