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Barclays launches record low 10-year fixed rate

Barclays has launched the UK’s lowest ever 10-year fixed rate mortgage at 2.99% for up to 60% loan-to-value (LTV).

Previously, the product was available at 3.45%. An application fee of £99 is applicable.

The bank is also introducing a new 60% LTV two-year tracker. This is based on Barclays’ bank base rate, which is currently the same as the Bank of England Base Rate at 0.5% but is not tied to it, plus 0.89%. The follow-on rate is Barclays’ base rate plus 1.99%. The product has a fee of £999.

It has also reduced the rates on some of its two year and five year fixed rate products.

Andy Gray, managing director of mortgages for Barclays, said: “The New Year is traditionally a time to get your finances in order and plan for the year ahead. We are thrilled to be offering a UK first in the shape of our 10-year 2.99% fixed rate.

“Our New Year deals cater for a range of needs from homeowners reviewing their mortgage to those hoping to get on the property ladder during 2015 – we are confident our rates will be extremely appealing.”

Full changes to the two and five-year products are; a two-year fixed rate mortgage at 60% LTV with a rate of either 1.77% with a £999 application fee or 1.99% with no application fee.

There is also a two-year fixed rate at 65% LTV and a rate of 1.78% which attracts an application fee of £1.999. An LTV of 75% with no application fee attracts a rate of 2.29%.

Five-year fixed rate mortgages at 60% LTV and a £99 application fee are at 2.49% or 2.89% with no application fee. A 65% LTV five-year fix with a £1,999 application fee is a 2.39%. Those wanting an LTV of 75% and no application fee will pay a rate of 3.25%.