Introducing the mortgage rate switch

A quick way to change your mortgage?

14 December 2022

4 minute read

Understanding the benefits of switching your mortgage rate.

Mortgage market view

In December, the Monetary Policy Committee (MPC) voted to increase the Bank of England base rate from 3.00% to 3.50%.

This was the ninth rise since December 2021, when the rate was set at 0.1% and the highest rate in 14 years. According to the MPC’s November policy report:

“The economy has been subject to a succession of very large shocks. Monetary policy will ensure that, as the adjustment to these shocks continues, CPI inflation will return to the 2% target sustainably in the medium term. Monetary policy is also acting to ensure that longer-term inflation expectations are anchored at the 2% target.”

With Sterling’s volatility, combined with market uncertainty, major lenders pulled mortgage deals or increased their mortgage rates.

This has created an unprecedented demand from clients looking to review their current mortgage products. Along with our clients, we hope the market will start to settle in the coming months.

Last month we focused on getting the best price for your property. This month we focus on rate switching, the process, and when you can look to review.

What is a mortgage rate switch?

A mortgage rate switch is when you switch your existing mortgage with a new mortgage product provided by your existing lender.

Why would I look to rate switch with Barclays?

Liam Boardman, Wealth mortgage specialist, says that clients who have a Barclays mortgage and want to rate switch can benefit from a quick, efficient process.

Boardman adds: “If there are no other changes to the account (for example, you are simply switching from one mortgage product to another), you usually do not need a new, full underwriting assessment, thus avoiding having to provide new income documentation, a credit check, a valuation or have a requirement for legal works.“

When can I switch my mortgage rate with Barclays Wealth?

If you’re eligible and hold a Barclays mortgage, you can arrange a new rate up to 180 days before your current rate ends or, if your deal has already ended or you have no early repayment charges, you can apply to switch now. Your new rate will apply as soon as your current rate ends.

You can look to switch your interest rate by either speaking with one of our designated Wealth mortgage specialists or if you originally applied through a mortgage broker you can look to action through them too.

Boardman concludes: “While this rate switching is only available to clients who have existing mortgage borrowing through Barclays, we continue to provide lending for new mortgages and anyone looking to re-mortgage. Please feel free to contact your Wealth Manager to speak with one of our mortgage specialists to discuss your lending needs.”

Things to consider

All customers can switch 180 days in advance but there may be restrictions on your channel of choice. Subject to application, financial circumstances & borrowing history. Terms and conditions apply, 18+.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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