Barclays, through its mortgage arm Woolwich, has launched a new mortgage offer for up to 90% loan to value (LTV) available for people purchasing a new home with British housebuilder Bovis Homes.
The new scheme, designed by insurance broking group Jardine Lloyd Thompson (JLT) in partnership with Barclays and Bovis Homes, will also provide buyers with free unemployment protection for three years from the date of exchange.
According to Barclays, the mortgage rates is fixed at 4.99% for two years for loans up to 90% LTV. After the first two years it will revert to a lifetime tracker at base + 2.49% which equates to 2.99% at today’s base rate. The arrangement fee is GBP999.
The mortgage package – being marketed as ‘The Perfect 10’ – is aimed at home-movers with limited equity and for first-time buyers who do not have to pay stamp duty on purchases up to GBP250,000. It will be available on new Bovis Homes at developments across England and Wales.
Andy Gray, head of mortgages for Barclays, said: “The deal struck today is about helping to get the housing market back on the right track but in a way that is sustainable in the long term. We believe this mortgage provides an affordable rate at 90%, striking the right balance for Barclays, Bovis Homes and its customers.
“We are now starting to see more competition and consumer confidence return to the market and we believe this gives the right level of rates with the security of a fixed rate deal for the first two years, ensuring that those with limited equity have the security of knowing what their payments are in the early years. This is about giving good rates at the right time which is excellent news for home-buyers and the housing market.”