Barclays drop lock facility 'prevents early repayment charge'

Date:Thursday 29th July 2010
Author: Susanna Kavka

The Barclays drop lock facility could save customers money if they decide they would like to change the format of their mortgage in the future.

It allows new clients who sign up for tracker or offset mortgages to opt for a fixed-rate deal further down the line without having to pay an early repayment charge.

Andy Gray, head of mortgages at the firm, noted that the Barclays drop lock facility introduces the option for people to gain greater security without being charged for it.

He said: "With speculation this week that UK interest rates are set to stay at record lows until 2014, the drop lock facility provides customers with peace of mind."

The firm also revealed that it has reduced the interest rates on its Woolwich mortgages by up to 0.21 percentage points for arrangements of up to 80 per cent loan to value.

This follows the company's decision to drop several the interest on several home finance deals by up to 0.7 per cent last month.