Barclays

June 11, 2010 06:34 ET

Barclays Makes New Mortgage Offer to Bovis Homes Customers

LONDON, UNITED KINGDOM--(Marketwire - June 11, 2010) - Barclays, through its mortgage arm Woolwich, has launched a market-leading mortgage offer for up to 90 per cent loan to value (LTV) available for people purchasing a new home with one of Britain's leading housebuilders, Bovis Homes, as part of efforts to help stimulate the new-build market in a sustainable way and provide affordable mortgages for consumers with low deposits.

The innovative 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.

The new mortgage, which is one of the most competitive rates at this level since the recession hit, is fixed at 4.99 per cent for two years for loans up to 90 per cent LTV. After the first two years it reverts to a lifetime tracker mortgage at base + 2.49 per cent which equates to just 2.99 per cent at today's base rate. The arrangement fee is £999.

The mortgage package – being marketed as 'The Perfect 10' – is aimed at home-movers with limited equity and could particularly benefit first-time buyers who do not have to pay stamp duty on purchases up to £250,000. A typical first-time buyer purchasing a Bovis Home at £150,000 would require a mortgage of £135,000 and would pay £788.41 per month on a 25-year repayment basis.

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 per cent, 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."

David Ritchie, Chief Executive of Bovis Homes, said: "In the current market, the ability of purchasers, especially first-time buyers, to access high loan to value mortgage finance has been severely curtailed. Working with Barclays, we have agreed 'The Perfect 10' mortgage package, which allows our customers to borrow up to 90 per cent of the value of their new Bovis Home at a very attractive fixed interest rate.

"Many of our potential customers are struggling to save the higher deposits required by the mortgage market today and this innovative new product, which is currently only available to us, will mean that more customers will be able to buy a new Bovis Home now, at a more affordable cost.

'The Perfect 10' will be available on new Bovis Homes at developments across England and Wales. For more information on 'The Perfect 10' scheme, customers should visit www.bovishomes.co.uk/perfect10 or contact their local Bovis Homes development.

Barclays is a major global financial services provider engaged in retail banking (current accounts and savings accounts), credit cards, corporate banking, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 140,000 people. Barclays moves, invests and protects money and provides personal loanshome insurancelife insurance and other services for over 49 million customers and clients worldwide. For further information about Barclays, please visit our website www.barclays.co.uk.

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