Barclays becomes the latest lender to launch mortgage lending strategies with mortgage rates below 4%

Barclays announced it would lower interest rates within its residential purchase and cashout range, with some of which are priced below 4%.

Residential purchases for fixed green homes for only five years, with a product fee of £899, which will be reduced from 4.13% to 3.99%.

Meanwhile, the two-year fixed interest rate for residential purchases for £999 at only 60% LTV has dropped from 4.46% to 4.20%.

The lender’s purchase amount (BTL) re-loan was fixed for only two years and its product cost was £1,795, when 75% of LTV had been reduced from 5.46% to 5.01%.

The lender will also have fixed residential purchases for only five years at an interest rate of 3.99%. This is 60% LTV, the minimum loan is £5K and the maximum loan is £899 for the product.

Barclays rate changes will take effect on February 13.

Earlier today Santander also announced it will reduce by less than 4% February 13 on two-year and five-year residential mortgages.

These changes make Santander the first high street mortgage lender this year, offering interest rates below 4%.