Remortgaging From Barclays

Why Do People Remortgage Away From Barclays?

There are several common reasons why Barclays mortgage holders choose to switch to a different lender when their deal expires:

• High SVR — The Barclays standard variable rate of around 7.74% is notably higher than many competitors. On a typical mortgage of £200,000, this could mean paying over £500 more per month compared to the best available fixed rates.
• Limited product transfer options — While Barclays does offer product transfers (switching to a new deal without leaving), the rates available through a product transfer are not always the most competitive on the market. Comparing externally ensures you are not missing a better offer.
• Changing circumstances — If your income has increased, your property value has risen, or your credit profile has improved since you first took out your Barclays mortgage, you may now qualify for deals that were previously out of reach.
• Better features elsewhere — Other lenders may offer more flexible overpayment terms, better offset mortgage options, or fee-free remortgage deals that suit your needs more closely.

Switching lenders is a straightforward process, and your new lender will handle much of the administrative work on your behalf.

Barclays SVR and What It Means for Your Payments

When your Barclays fixed rate, tracker, or discount deal comes to an end, your mortgage automatically moves onto the Barclays standard variable rate (SVR). As of recent terms, this rate sits at approximately 7.74%, which is among the highest SVRs offered by any major UK lender.

To put this into perspective, here is how the Barclays SVR compares to current market rates on a £200,000 repayment mortgage over 25 years:

• At 7.74% (Barclays SVR) — monthly payments of approximately £1,510
• At 4.50% (competitive fixed rate) — monthly payments of approximately £1,111
• Potential monthly saving — around £399 per month, or nearly £4,800 per year

These figures are illustrative, but they demonstrate why staying on the Barclays SVR for any length of time can be costly. Even if you are only on the SVR for a few months while arranging a remortgage, the additional interest adds up quickly. Many borrowers start the remortgage process three to six months before their deal ends to ensure a seamless transition.

How to Remortgage Away From Barclays

Remortgaging from Barclays to a new lender follows a well-established process. Here is what to expect step by step:

• Check your current deal — Log into your Barclays mortgage account or call their mortgage team to confirm your current rate, remaining balance, any early repayment charges (ERCs), and when your deal ends.
• Get a property valuation estimate — Understanding your property's current value helps determine your loan-to-value (LTV) ratio, which directly affects the rates available to you. A lower LTV generally means access to better deals.
• Compare the market — Use a mortgage broker or comparison service to search across all available lenders. This ensures you are not limited to Barclays product transfers or a handful of high street options.
• Apply for your new mortgage — Your chosen lender will carry out affordability checks, a credit search, and arrange a valuation of your property. Many remortgage deals include free valuation and free legal work.
• Completion — Once approved, solicitors handle the transfer of your mortgage from Barclays to the new lender. This typically takes four to eight weeks from application to completion.

You do not need to inform Barclays that you are remortgaging until the process is well underway. Your new lender's solicitors will contact Barclays directly to obtain the redemption figure and manage the switch.

Things to Check Before Leaving Barclays

Before committing to a remortgage away from Barclays, there are several important factors to consider:

• Early repayment charges — If you are still within your initial deal period, Barclays may charge an ERC for leaving early. This is typically a percentage of your outstanding balance and can range from 1% to 5% depending on how far through the deal you are. Check your mortgage offer document or contact Barclays to confirm.
• Barclays product transfer rates — It is worth checking what rates Barclays will offer you through a product transfer. In some cases, particularly if your LTV is high or your circumstances have changed, staying with Barclays on a new deal might be competitive. However, you should always compare these rates against the wider market.
• Linked accounts and benefits — If you hold a Barclays current account, savings, or insurance products that are linked to your mortgage, check whether any benefits or preferential rates will be affected by switching your mortgage elsewhere.
• Outstanding fees — Confirm whether there are any outstanding arrangement fees, deferred fees, or other charges that will be added to your redemption figure when you leave.

Taking the time to gather this information ensures you can make a fully informed decision and avoid any unexpected costs during the remortgage process.

Why Using a Broker Helps When Leaving Barclays

While it is possible to remortgage from Barclays by approaching new lenders directly, using a mortgage broker can make the process significantly easier and potentially more rewarding. Here is why:

• Whole-of-market access — A good broker can search thousands of mortgage products from hundreds of lenders, including deals that are not available to borrowers who apply directly. This is particularly valuable because Barclays is a large lender, and some smaller or specialist lenders may offer more competitive rates for your specific circumstances.
• Expert assessment of your situation — A broker can assess whether it makes more sense to remortgage away from Barclays or to accept a Barclays product transfer, taking into account any ERCs, fees, and the overall cost of switching.
• Time saved — The broker handles the research, paperwork, and liaison with both Barclays and your new lender, saving you considerable time and effort.
• Complex cases — If you are self-employed, have a complex income structure, or have had credit issues since taking out your Barclays mortgage, a broker can identify lenders whose criteria best match your profile.

Many brokers do not charge a fee for remortgage advice, as they receive a commission from the lender when your mortgage completes. This means you can benefit from professional guidance at no direct cost.