Barclays offering no fee mortgage deal

Those looking for cheap mortgages may be interested to hear about Barclays new zero fee home loan.

The mortgage product is available to buyers with a ten per cent deposit and has an interest rate of 4.99 per cent which is fixed for three years.

In the same range, there is a fee-free 90 per cent five-year mortgage which is available to people who already hold a Barclays current account. The rate on this mortgage is fixed at 5.49 per cent.

Both of the deals revert to a 3.99 per cent tracker once the fixed term comes to an end.

Andy Gray, head of mortgages for Barclays, said: "As one of the UK's largest lenders we recognise the importance of supporting the first time buyer market which is why we've committed today to extend our lending to 90 per cent.

"Higher loan-to-value mortgages with more competitive rates have started to come through the market this year and our deals are sitting well below the average rates."

Recent figures from the British Bankers' Association found that mortgage lending increased in the 12 months to September.
 

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2011-10-27 12:53:42 © Moneyextra.com