It's not the only lender announcing moves…
Barclays has increased rates on several of its residential purchase and remortgage deals, while Market Financial Solutions (MFS) and Investec Bank have reduced their mortgage product rates and arrangement fees, respectively.
Among Barclays’ repriced products is the five-year fixed residential purchase-only mortgage at 60% loan-to-value (LTV), which has increased from 3.99% to 4.11%. The product includes a £899 fee, with loans starting from £5,000 and capped at £2 million.
The high street lender also raised the rate on its two-year fixed purchase-only deal at 90% LTV from 4.74% to 4.80%, also with a £899 fee and the same loan limits. Barclays’ green home five-year fixed at 60% LTV has risen from 3.96% to 4.02%. The product has a fee of £899 and allows borrowing from £5,000 to £2 million.
In the remortgage category, the five-year fixed product at 85% LTV went up from 4.87% to 4.97%, with a fee of £999. Loan sizes range between £5,000 and £2 million. The Great Escape five-year fixed deal at 85% LTV, which has no product fee, has increased from 4.97% to 5.07%. It has a minimum loan size of £50,000.
In contrast, specialist lender MFS has lowered rates across its bridging finance and Bridge Fusion offerings.
Bridge Fusion, launched in mid-2024, combines features of bridging loans with the structure of a longer-term buy-to-let (BTL) mortgage. The product offers loan terms between 24 and 36 months and supports funding of up to £20 million for residential, semi-commercial and commercial real estate.
Rate reductions apply to fixed bridging products, including single residential loans, large loan segments and the Bridge Fusion range.
Meanwhile, Investec Bank has introduced several changes to its mortgage terms for high-net-worth clients, slashing its residential mortgage arrangement fee from 1% to 0.50%.
For self-build mortgages, the fee is dropping from 1.50% to 1.00%. In addition, arrangement fees will now be capped at £50,000 for owner-occupied homes and £75,000 for self-build cases.
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