Base rate cut effect on Barclays mortgages

Date:Friday 6th February 2009
Author: Rachel Fletcher

Details about cuts to Barclays mortgage rates in light of yesterday's base rate cut have been outlined by the lender.

Barclays, which deals with its mortgages under the Woolwich brand, said that on March 1st, tracker mortgage customers will get a 0.5 percentage point reduction to one per cent, while new customers will get the rate from today.

On March 1st, the standard variable rate for Woolwich will also be reduced to 4.99 per cent, again marking a cut of 0.5 percentage points.

The lender said that it was dedicated to getting borrowers to be able to stay in their homes and claimed to have measures in place to assist borrowers entering financial difficulty with their mortgages.

Last month, Woolwich launched what it said was its lowest ever fixed-rate mortgage deal, beginning at 2.29 per cent for a year before turning into a tracker product at 2.29 per cent above base rate.

At the time, Woolwich head of mortgages Andy Gray said dropping costs of lending and increased competition were leading to better mortgage rates in the market.