Barclays joins mortgage wars with two-year tracker at 0.79 per cent above base rate

 

Simon Read
Saturday 29 November 2014 01:00 GMT
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This week Barclays became the latest bank to join a mortgage battle in which the cost of borrowing among a range of lenders has kept tumbling recently. On Thursday the bank cut rates on a number of deals, the highlight being a two-year tracker at 0.79 per cent above base rate.

Mark Harris, boss of the mortgage broker SPF Private Clients, said: "While a mortgage battle has broken out in the fixed-rate arena, borrowers should not forget base-rate trackers.

"Barclays' deal gives a pay rate of just 1.29 per cent for those remortgaging who don't need the certainty of a fixed rate. Borrowers do require a 40 per cent deposit but the fee is a reasonable £999 considering the great rate."

However, as often with good-looking deals, there's a potential hidden sting in that the rate doesn't actually track the Bank of England base rate but instead tracks what the bank calls the Barclays Bank Base Rate. That does follow the base rate but is not guaranteed always to do so. In other words, the rate could rise even though the Bank of England rate doesn't.

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