Global financial services firm Barclays has announced that it is launching “The Great Escape” remortgage deal in the UK to lure homeowners off their lenders’ standard variable rate (SVR).
As part of the new move, Barclays is offering homeowners who remortgage to it a lifetime tracker of 2.18 percent from the current 2.68 percent.
The firm is targeting around 700,000 borrowers who are currently sitting on their lender’s SVR. “We have built this package specifically to help the 700,000 families who feel trapped on their current lender’s SVR. We know many of the barriers that stop people re-mortgaging are simply down to cost. We believe the deal launched today will help stimulate the market as it cuts those costs out and provides an additional £300 cashback,” said Andy Gray, Barclay’s head of mortgages.
Borrowers need at least 30 percent equity in their property to take advantage of the new deal, which will be available starting today.
The new rate is slightly higher compared to the current lifetime tracker rate of 2.19 percent, although it is only available to customers who are borrowing less than 60 percent of their property’s value.
Barclays estimated that a customer with a £150,000 loan and an SVR of 3.5 percent could save as much as £60 a month or around £700 a year by taking advantage of the new offer.