BARCLAYS launched a new bid to entice prospective house-buyers back to the market yesterday by offering no-fee mortgages needing only a ten per cent deposit.
The bank has refused to offer 90 per cent loan-to-value mortgages since 2008 when it pulled them during the financial crisis, but is now following rivals such as NatWest and Santander back into the market.
The loans will be issued through its Woolwich mortgage division and will waive the standard £499 application fee charged for most mortgages.
Barclays billed the new offer as a way to revive the UK’s stalled housing market by getting first-time buyers on the property ladder and helping homeowners to remortgage their properties.
“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,” said Barclays’ head of mortgages Andy Gray.
The deal will give customers a three-year 4.99 per cent interest rate before reverting to 3.39 per cent above the base rate after the fixed rate period ends. Anyone holding a Barclays current account can also request a five-year fixed 5.49 per cent rate, again with no fees, the bank said.
Personal finance comparison site www.moneysupermarket.com said there were 312 mortgages offering 90 per cent loan to value in July, the highest level of choice seen since November 2008.
FAST FACTS | BARCLAYS
● Will offer its first 90 per cent mortgages since 2008 through its Woolwich lending arm
● Barclays will waive £499 fee on new 90 per cent mortgages and charge a 4.99 per cent three-year rate, or 5.49 per cent for five years.