Banking giant Barclays announced today that it is launching a new mortgage combining a base rate tracker mortgage with a fixed follow-on rate mortgage.

The product, dubbed “Future Fix”, is meant to give potential borrowers the best advantages of both kinds of mortgage, and is on offer with a five-year term, with up to 70 per cent loan-to-value (LTV) and a £1,299 fee.

For the first two years, the deal offers a tracker rate mortgage at the base rate plus 2.99 per cent, then the next three years of the deal are at a fixed rate of 4.29 per cent. This means that the first two years are currently rated at 3.49 per cent.

The bank’s head of mortgages Andy Gray said that the Future Fix mortgage had been designed to take advantage of the low base rate of interest currently being maintained by the Bank of England.

“Future Fix gives borrowers the best of both worlds – tracking while rates are low and also fixing at today’s historically low prices for two years’ time,” he declared.

Among other changes at Barclays, it has cut the interest rates on its two year 80 per cent LTV mortgages by 0.11 per cent, cutting the rate from 3.59 per cent to 3.48 per cent. It has increased the LTV on its three year fixed-rate mortgages from 60 to 70 per cent, with 3.69 per cent rates or 4.29 per cent for a five-year fixed-rate deal – and has also made available a new mortgage product, a two year fixed-rate deal at 2.84 per cent for customers seeking to borrow over £250,000. A two year offset at the base rate plus 2.49 per cent is also available.

Comments