Barclays cuts mortgage rates

Barclays has announced it is cutting its mortgage rates by up to 0.32 percentage points.

The bank claimed the move is to help protect borrowers from future rises in the Bank of England base rate and to encourage homeowners to switch deals now before the increase.

A reduction in mortgage rates has also been applied to the company's Great Escape home loan, which now offers a rate of 3.79 per cent, a cut of 0.20 percentage points, and an increased LTV of 70 per cent, enabling more customers to qualify.

The two-year, fixed-rate deal also boasts no product fee, giving customers savings of up to £999 compared to other home loans.

"Many mortgage borrowers breathed easy this month when the base rate didn't go up so now they need to take urgent action to really start protecting themselves for at least the next two years," said Andy Gray, head of mortgages for Barclays.

He suggested that the base rate may increase as soon as next month, however, Jasmine Birtles, founder of moneymagpie.com suggested that the summer or the end of the year are more likely dates.

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2011-04-20 12:53:03 © Moneyextra.com