Whether you’re buying your first home or your fourth, securing a mortgage is a massive part of the overall house buying process. Barclays is a top-rated UK provider and offers a vast range of mortgage products to suit your individual requirements.
Barclays’ history as a bank stretches back over 400 years! Nowadays, it’s also known for being one of the largest UK mortgage providers. In fact, in 2019, Barclays were responsible for around 9% of all mortgage deals.
What’s more, Barclays has won many awards over the years for their products, including the Best Offset Mortgage Lender award by What Mortgage in 2019.
There’s a wide range of Barclays mortgage products to choose between. In addition to options for first-time buyers and those looking to remortgage, you’ll also be able to apply for:
If you’re keen to invest in property rather than live in it, you’ll want a buy-to-let mortgage. Unlike many mortgages of this type, you don’t need to already own a residential property to apply for a Barclays buy-to-let mortgage. Instead, you need to pass the following criteria:
Be over 21 years old (for joint applications, only one person needs to be over 21)
Have an annual income of at least £25,000 if you’re trying to borrow up to £1m
Have an income of £75,000 a year if you’re trying to buy something over £1m (alternatively, if you’re buying with someone else, your joint income must be over £100,000 a year)
You can borrow up to £2m per property with Barclays, although you can only mortgage a total of 6 properties with them. It’s possible to mortgage 10 buy-to-let properties, although 4 of them will need to be with other lenders.
Keen to buy an eco-friendly home? As well as helping preserve the planet, you might also be able to qualify for a Barclays Green Home mortgage.
This type of mortgage rewards those buying an energy-efficient new build with a lower mortgage rate. The property will need to be in energy efficiency band A or B (or have a rating of 81 or less), plus you’ll need to buy it through one of the following Barclays partner home builders:
Have a family member who’s desperate to buy their very first home, but they don’t quite have enough for a deposit? A Barclays Family Springboard mortgage allows you to gift money to them to buy a house. They’ll be able to secure a mortgage with no deposit, while Barclays will take the money you gave and put it in a Helpful Start Account.
Your contribution will sit in the account and gather interest for 5 years before being returned to you. Meanwhile, the family member you helped will own a house with up to a 100% mortgage.
A Family Springboard mortgage is a good option for those who need a leg up onto the property ladder. Note, though, that if the buyer fails to pay any mortgage repayments, Barclays may keep the money in the Helpful Start account for longer than 5 years.
For some first-time buyers, the Help-to-Buy initiative could be a good match. This is a government-run scheme that helps buyers purchase new-build homes from individual developers.
Barclays will provide 75% mortgages for those on the Help-to-Buy scheme in England or Wales. The buyers will then offer a minimum of 5% of the overall property amount for a deposit and receive the remaining 20% through the scheme. If you’re buying in London, the amount Barclays will loan drops to 55%; however, you’ll then receive 40% through the Help-to-Buy scheme.
The exact amount Barclays is willing to lend you will depend on a range of factors, including:
Your household income
Any debts you might have
If you’re buying alone or with someone else
How much you have saved for a deposit
Your average spending
You might be able to borrow up to 5 times your annual salary for your property. This calculation is based on what a mortgage lender thinks you can afford. If you’re buying with someone else, the amount will be based on your joint income.
Another factor to consider with a mortgage is your loan-to-value (LTV). This is the percentage of your property’s total worth that a bank or lender is willing to loan you. For example, if you want to buy a £250,000 home and have a deposit of £50,000, which is 20% of the property value, you’ll need an 80% LTV mortgage.
Barclays currently offer 60%, 70%, 75%, 80%, 85%, and 90% LTV mortgages. What you’ll be able to get will depend on your finances, the type of mortgage you’re looking at and your mortgage rate.
Why not use our handy mortgage calculator to work out what a lender might be prepared to lend you?
When we talk about mortgage rates, we mean the amount of interest you’ll pay on top of your monthly loan repayments. Barclays offer various different kinds of rates, such as:
A fixed-rate mortgage is one of the most popular types. It essentially means your interest rate is set at one figure for a set period of time. It’s a good option if you want to know your monthly repayments for the near future.
Barclays fixed-rate mortgages can be set for between 2 and 10 years. Within that period, you’ll pay the same amount of interest every month. Once your fixed-rate mortgage term is over, you’ll be switched to the standard variable rate for Barclays.
A tracker mortgage rate can go up and down every month. The rate is typically set against the Bank of England Base Rate. This is the rate that the Bank of England offers to banks and lenders. It’s reviewed 8 times a year.
A Barclays tracker rate mortgage means your interest rate could go up or down. You’ll be able to decide how many years you’d like to be on a tracker rate, plus you might have more flexibility with overpaying on your mortgage.
Selling up yet love the terms of your current mortgage? It’s entirely possible to take your Barclays mortgage with you when you move.
This is called porting your mortgage. With Barclays, you can transfer your mortgage to your new home without any fees as long as the transfer happens within 90 days of completing the deal on your new property.
There’s also the option of borrowing more if your new property is worth more than the old one. You’ll choose a new deal for the extra portion of your mortgage under a different rate and repayment period. This is known as a multi-part mortgage.
If you suddenly find yourself unable to pay your monthly repayments, it might be possible to apply for a Barclays mortgage holiday.
A mortgage holiday does what it says on the tin – it offers a break from paying off your mortgage. If you have a Barclays mortgage, you might be eligible to take a payment holiday of 3 months at a time for a total of 6 months. During this period, you could pause repayments on your mortgage or simply pay a lower rate.
While a mortgage holiday can save grace if you’re in financial difficulty, you will still have to pay the total amount off. You’ll also be charged interest on the months when you haven’t paid, meaning your mortgage could end up taking longer to pay off.
If you’re keen to pay off your mortgage as quickly as possible and have extra funds available, you may want to make overpayments.
How much you’ll be able to overpay on your Barclays mortgage will depend on which rate you’re on. For most mortgages, you’ll be able to overpay a maximum of 10% of the property’s total value each year. Some rates also let you pay an unlimited amount. You’ll be able to find out how much you can overpay by checking your mortgage documents.
It’s possible to apply for your Barclays mortgage without going into your nearest branch. If you’re not sure which mortgage is right for you, you can make a telephone appointment with a Barclays mortgage advisor 7 days a week.
The advisor will then get the ball rolling with your application and organise things such as a valuation on the property you’re looking to buy. While you’ll do this all over the phone, you should be able to track and manage your mortgage online once you’ve started your application. You can do this using the Barclays Track It function.
In order to apply for a mortgage with Barclays, you’ll need to have a range of documents handy. You’ll either provide these yourself or get your solicitor to do so on your behalf. These include:
An agreement in principle (see below)
Proof of address
Details on any loans, credit card bills or overdrafts
Details of any insurance policies you have, whether that’s current home insurance or life insurance
Proof of income (this will differ depending on if you’re in permanent employment or self-employed)
Your solicitors contact details
Information on the home you’re hoping to buy, including building type, if it’s a leasehold or freehold, its address and its value
The bank account details of the account you’ll pay your mortgage repayments out of
Contact details of the estate agent or property seller for the property valuation
You may need to provide additional documentation if you’re applying for a remortgage, a buy-to-let mortgage or an interest-only mortgage. Your mortgage advisor should be able to tell you exactly what it is they’ll need.
This is a requirement of every mortgage lender and basically proves that you can afford the mortgage you’re applying for. Sometimes called a mortgage in principle, it provides mortgage lenders with assurance that you will make your monthly repayments.
You can apply for your agreement in principle (AIP) from Barclays online or through another mortgage provider. This won’t affect your credit score as it does not require a complete credit check. Instead, you’ll only be asked basic questions about your annual income and average expenses.
You should receive your AIP back straight away, and it’s then valid for 90 days. It doesn’t guarantee that you’ll be offered a mortgage with Barclays but should give you a good indication.
If you’re wondering how long it takes to secure a Barclays mortgage, this will depend on a few factors. Typically, the process takes around two weeks. Within this time, Barclays will review your documents, complete a valuation of the property and do any underwriting.
It could take longer or less time, depending on how busy the housing market is and if you’ve provided all the relevant documents. Once you’ve had an offer of a mortgage, it’ll be valid for 6 months. If your property purchase takes longer than this, you might be able to apply for an extension. Barclays will then release the funds on your completion date, either to you or your solicitor.
Wondering how well-reviewed Barclays is as a mortgage lender? Which? guide’s 2020 review put them at joint 13th out of 23 UK mortgage providers. What’s more, they scored particularly well on their application process and online management access.
Not sure which Barclays mortgage is right for you? Use our guide to compare mortgages from all the big lenders in the UK. You can also discover more details about the house buying process as a whole on our information-packed mortgages page.