Barclays in 'no fee' mortgage deals
Barclays is stepping up competition in the 90% mortgage market by introducing new "zero fee" deals from Thursday.
Through its mortgage arm Woolwich, Barclays will offer buyers with a 10% deposit a three-year fixed deal at a rate of 4.99% and no fee.Also included in the new range is an application fee-free 90% LTV (loan-to-value) five-year "loyalty" mortgage, for customers who hold a Barclays current account, at a fixed rate of 5.49%. Borrowers who do not qualify need to pay a £499 fee.
All the deals revert to a lifetime tracker of 3.39% above the base rate after the fixed rate period ends.
Rightmove's Consumer Rental Forecast found this week that 55% of tenants in the rental sector are "trapped renters" - those who would like to buy but cannot afford to.
Mortgage lenders have been ramping up the competition as the Bank of England keeps the base rate at an historic 0.5% low.
Comparison website Moneyfacts said there are 256 maximum 90% LTV mortgages on the market, up from 206 a year ago and more than double that of two years ago, when consumers had only a choice of 101 mortgages.
Moneyfacts said that a year ago, there was only one maximum 90% LTV three-year fixed mortgage with a rate of under 5% - and now there are 16 three-year fixed rate mortgages under 5% and one below 4%.
A Moneyfacts spokeswoman said: "Any additional maximum 90% LTV introduced to the market is good news for customer choice, as higher loan-to-value mortgages have tended to be few and far between and expensive."
© 2011 Press Association