Barclays pulls market-leading deals and hikes rates by up to 30bps – Mortgage Strategy

Barclays is set to raise rates by up to 30 basis points tomorrow, with some of its market-leading deals increasing above 5%.

The lender is hiking prices on 85 products as well as withdrawing six deals.

Barclays’ steepest increases are on residential deals.

One of its current top deals, a two-year fixed for purchase at 60% LTV with an £899 fee, will increase by 30bps, from 4.75% to 5.05%.

Another of its sub-5% deals, a five-year fix for purchase also at 60% LTV with an £899 fee, will increase by 10bps, from 4.93% to 5.03%.

For borrowers requiring larger loans up to £10m, a two-year fixed for purchase and remortgage at 60% LTV with a £1,999 fee will go up by 25bps from 4.96% to 5.21%.

At higher LTVs there are also some substantial changes.

A two-year fixed for purchase at 85% LTV with a £1,999 fee will increase by 25bps, from 5.48% to 5.73%.

A five-year fixed for purchase at 85% LTV with a £1,999 fee will increase by 25bps, from 5.45% to 5.70%.

In the lender’s buy-to-let range, a number of deals are rising by up to 20bps.

Trinity Financial product and communications director Aaron Strutt says: “Barclays is pulling the market leading 4.75% two-year fix and the 4.93% five-year fix.

“The bank last changed its rates on September 22, so while these deals have not been around for long, they would have been incredibly popular especially with so many of the bigger lenders mostly offering fixes over 5% now.

“This move puts pressure on lenders like NatWest and Nationwide as some of the remaining lenders offering fixed rates below 5%.

“NatWest has a five-year fix at 4.98% and Nationwide has a 4.93% two-year fix and a 4.89% five-year fix.

“Unless there is better global news, particularly regarding inflation and the war between Iran and America, it doesn’t seem like rates will be coming back down for a while, but the market can change quickly.

“For the moment, if you want a sub-5% fixed rate you will need to be quick because there probably won’t be any left soon.”