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!
Barclays mortgage product changes
From tomorrow, Wednesday 25 March, we are changing rates on a selection of residential and buy-to-let (BTL) products in our purchase, remortgage and reward range
Please see the rate overview guide for information of all our product changes.
Product withdrawal timings
Please be advised that upon withdrawal, the products will be removed from the dropdown options within our application services.
For new lending, the ‘Mortgage and product details’ application section needs to be completed and a MIS (ESIS) generated in the Barclays system, on or before the date of withdrawal (Tuesday 24 March).
Don’t forget, once the product has been recommended for new lending, you have a further 9 days from withdrawal until the last application date (Thursday 2 April) to gather all requirements and submit your fully-packaged case
For product transfers, the product must be selected and application submitted on or before Wednesday 25 March.
We’re updating our valuation fees: Lower costs and greater certainty
Valuation fee improvements designed for you and your clients
You’ve told us that simple, clear processes matter most.
With that in mind, we’re pleased to introduce a series of positive enhancements to our valuation fees that are designed to provide greater value for your clients and make costs clearer for you.
From Sunday 22 March, these changes will reduce costs for many customers while also improving transparency across higher-value cases.
Changes apply only to new applications submitted on or after this date.
Applications submitted before Sunday 22 March will continue under the current fee structure.
Increased free valuation threshold for residential purchases
The maximum purchase price eligible for a free valuation on residential purchases is increasing from £2 million to £3 million.
This represents an average saving of £1,200 for clients purchasing within this range.
A new fixed valuation fee for residential purchases where the property is valued above £5 million
For residential properties valued above £5 million, we’re introducing a fixed valuation fee.
Providing greater clarity and making it easier to set clear expectations with clients at submission.
Buy-to-let (BTL) purchases valuation fee removed
We’re also removing valuation fees entirely on all BTL purchase applications up to £500,000.
Delivering an average saving of £290 per purchase.
These enhancements are part of our continued commitment to making it easier to work with us, and provide better outcomes for your clients.
Key changes to our BTL affordability assessments
A dynamic stress rate is now applied for buy-to-let affordability assessments.
We’ve now introduced a dynamic stress rate for BTL that is linked to your clients’ selected product rate.
The stress rate will now be calculated as a fixed margin above the chosen product rate, subject to a minimum floor. Linking the stress rate to the chosen product rate means our affordability assessments more closely reflect your clients’ circumstances, while maintaining a consistent stress margin to support responsible lending.
In many cases, this change will increase the maximum loan amount available, when compared with our current assessment. Outcomes will continue to depend on the client’s circumstances and our wider lending criteria.
Please note that in addition to this change, we have also updated our Interest Coverage Ratio (ICR) and running cost assumptions.
How will this impact my clients’ affordability?
You can use our updated BTL affordability calculator to complete an indicative affordability assessment. Please ensure the interest rate entered in the tool reflects the expected product as closely as possible, as this may impact the outcome.
What about my pipeline cases?
Pipeline applications created prior to today will not be impacted by the changes outlined.