Barclays is withdrawing its core residential products at 75 per cent loan-to-value in a bid to manage demand,
On Monday the lender announced it was withdrawing one of its 85 per cent LTV deals for the same reason.
Brokers will have nine days until Friday October 9 to complete applications for the 75 per cent LTV products that are being withdrawn, so long as they have a successful case booking.
The products being withdrawn are, for purchase only:
- 1.85 per cent two-year fixed £0 product fee, 75 per cent LTV, min loan £5,000, max loan £5m
- 1.99 per cent five-year fixed £0 product fee, 75 per cent LTV, min loan £5,000, max loan £5m
For remortgage only:
- 1.82 per cent Great Escape two-year fixed £0 product fee, 75 per cent LTV, min loan £50,000, max loan £1m
- 1.84 per cent Great Escape five-year fixed £0 product fee, 75 per cent LTV, min loan £50,000, max loan £1m
For purchase and remortgage only:
- 1.67 per cent two-year tracker £999 product fee, 75 per cent LTV, min loan £5,000, max loan £2m
- 1.36 per cent two-year tracker £1,999 product fee, 75 per cent LTV, min loan £2m, max loan £5m
- 1.59 per cent two-year fixed £999 product fee, 75 per cent LTV, min loan £5,000, max loan £5m
- 1.89 per cent three-year fixed £0 product fee, 75 per cent LTV, min loan £5000, max loan £1m
- 1.79 per cent five-year fixed £999 product fee, 75 per cent LTV, min loan £5,000, max loan £5m
In the email to brokers, Barclays says: “This action was taken to assist us in effectively managing our application flow, so we can maintain our service levels for you and your clients, following a number of recent pricing changes within the market.”
It adds: “We can confirm that this is a short-term change as we expect to communicate new product options in due course.”
Interestingly Barclays did not put that in their email. No mention of 75% core range. They only highlighted 3 as below..very naughty
Hi
Please be advised to further assist us to maintain our service levels for you and your clients, we are making changes to a small selection of products within our Residential purchase and remortgage ranges effective tomorrow, Friday 2nd October – with the last date for submitting qualifying applications, Saturday 10th October.
What products are we changing?
Residential Purchase
1. 2.95% 5 Year Fixed, £0 fee, 85% LTV, Loans £5k – £2m increasing to 3.20%
Residential Purchase and Remortgage
1. 1.42% 5 Year Fixed, £999 fee, 60% LTV, Loans £5k – £5m increasing to 1.65%
2. 1.98% 5 Year Fixed, £999 fee, 80% LTV, Loans £5k – £2m increasing to 2.24%
Existing products will be withdrawn overnight with new updated products being introduced in sourcing systems from tomorrow.
Click here to view our updated Intermediary rate sheet.
You have nine days to submit applications with a successful case booking
We can confirm that you will have until Saturday 10th October to submit an application on any of the products that are changing, so long as you have a successful case booking. We trust this provides assurance for those cases where you have already recommended and booked the product in our application system.
Important – Securing an application on a changing product
For any new cases, which are yet to progress to successfully receive a booking, you will need to have secured a case booking today.
Note – If you have visited the Barclays Intermediary HUB this morning, you may have noticed that our allocation has closed for today, however, to support you with managing these changes, we can confirm we will be re-opening with a limited allocation from 2.15pm today. These will be available on a first come, first served basis and we will provide notification on the Intermediary Hub once these additional bookings have been allocated.
Key product change timings confirmed*
• Existing products: Final date for generating a Mortgage Information Sheet (MIS) Thursday 1st October, 2020
• Last applications on withdrawn products: Saturday 10th October, 2020
Contacting us
We appreciate that it’s as much a busy period for you, as it is for us. We’re available to support where needed, but due to the volume of queries generated at this busy time, it can take longer to speak with a member of our Intermediary support team than usual, and many of the telephone queries that our team are currently receiving can be answered instantly by logging into case tracking in the Barclays Intermediary Hub, or for those that do require a member of the team, can be answered much quicker by contacting us via LiveChat – again accessible by logging into the Barclays Intermediary Hub.
Therefore, to access the information you need to promptly support you and your clients, please access the Barclays Intermediary Hub to review case notes in the first instance, and if required, contact us via LiveChat. For queries that you feel necessitate a call, our telephone lines remain available from 9am to 6pm, Monday to Friday, however please be aware that to allow our support team to work through and assist the calls already received and in the queue, no new calls will be accepted after 5.30pm.
Best practice – initial underwriter assessment
For newly submitted applications, please note that our timescale to initially assess a case is currently 4 full working days. Please refrain from contacting us for an update within a week of case submission, as unfortunately our support team won’t be in a position to share any information prior to a case being assessed. Also, to ensure your client’s application progresses effectively, please provide all packaging requirements ahead of our initial underwriter case review.
We hope this provides you with the guidance and time needed to provide your clients with a great service and we thank you for your ongoing support during this fast moving period.
*Applications on an existing product
To qualify for a product, a MIS needs to have been generated, on or before the date of withdrawal (Thursday 1st October) either using our Barclays systems or your preferred sourcing tool and must be submitted prior to the last application date – Saturday 10th October
Please be advised that upon withdrawal, the products will be removed from the dropdown options within our new lending application services. Therefore, you will need to ensure the product has been selected, booked and saved in the application today.