Barclays claim 800,000 are Overpaying on Mortgages

18th of February, 2011 Bookmark and Share
Barclays Bank has recently published figures that suggest over 800,000 UK borrowers are overpaying if on a current Standard Variable Rate. In launching their "Great Escape" mortgage (which uniquely allows the ability to track the Bank Base Rate but provides the ability, without penalty, to fix the rate at any time), they claim the average UK borrower could save £2,006 on the product. The UK lender whilst running a national advertising campaign in Branch and through its mortgage broker network has significantly tightened lending criteria, particularly for those seeking an interest only mortgage and calculates general affordability based on a rate of 5.69% on a repayment basis. The rates offered are amongst the lowest rates nationally and start from 2.38%..

Staying with Barclays, the Bank has today reported £6.1bn profits and increased the bonus of senior executives by 20% despite calls from the Government for restraint. Bob Diamond, chief executive of Barclays, recently told MPs that the time for "remorse" was over as he refused to say whether he would waive his bonus. Giving evidence to the Treasury Select Committee, Mr Diamond, who is reportedly in line for an £8m payout this year, said: "I will make that decision with my family." George Osborne said any bonus Mr Diamond received this year should be smaller than that paid to him in 2009.
Rob Killeen