Barclays withdraws from portfolio BTL and ups rates to manage service levels

Barclays withdraws from portfolio BTL and ups rates to manage service levels

 

From tomorrow, the bank will no longer offer a two-year fixed deal up to 75 per cent loan to value (LTV) to portfolio landlords, which Barclays said would remove it from the large landlord market until it launched a replacement product.

Barclays is also removing its residential purchase and remortgage three year fixed rate at 1.38 per cent, at 75 per cent LTV.

Multiple rates have been increased across the bank’s residential and buy-to-let (BTL) ranges.

The five-year fix buy-to-let purchase deal available to landlords with a 25 per cent deposit and a £1,295 product fee has increased by 0.2 per cent to 2.30 per cent.

Its 60 per cent LTV two-year fix for BTL purchases and remortgages has increased from 1.55 per cent to 1.85 per cent. The product has a one per cent fee.

And for buy-to-let remortgages only, the two- and five-year fixed rates at 75 per cent LTV have been increased from 2.25 per cent to 2.45 per cent. The both carried a fee of £1,795.

 

Residential rates

On the residential side of the mortgage business, Barclays has increased selected rates by up to 0.30 per cent.

The greatest increase is on the 1.85 per cent five-year fix which has risen to 2.15 per cent. It is available up to 80 per cent LTV and has a product fee of £999.

The decision to withdraw deals and up rates follows the bank’s decision to introduce daily case booking limits last week.

In an email to brokers about the changes, Barclays said: “On Friday we communicated the temporary introduction of daily case booking limits.

“To offer you some assurance around case availability, we can confirm that new bookings were available yesterday, Monday 27 July up until 3.30pm and the product changes announced today will further ensure our ability to continue to effectively manage the flow of applications we receive, and provide you and your clients with a consistent level of service.”

Barclays said it could not guarantee bookings would be available until the same time today. Updates will be provided in the Barclays Intermediary Hub.

The bank said it expected to be able to tell brokers “shortly” about when it planned to remove the lending limits.

To secure a product due to be changed or withdrawn today, brokers must select and save the product in Barclays’ application system, and have received a successful case booking, by the end of the day.

The last date to submit a saved application is 6 August.