Deposit hike for Barclays' new mortgage customers

Published 24th Jun 2009

Barclays has increased the minimum deposit it asks new customers to put down to get a mortgage.

Borrowers now have to have a deposit of 20 per cent, equivalent to £30,000 on a £150,000 property.

Until now they qualified for a deal with a 15 per cent deposit.

The bank has also increased a number of its fixed-rate mortgages.

The previous two-year fixed deal of 5.29 per cent with a 20 per cent deposit has been increased to 5.99 per cent with a £999 fee.

Monthly repayments on a typical £150,000 mortgage would be £966 and the total cost over two years including fees £24,183.

Those with smaller deposits would be better off choosing Yorkshire Bank's deal which requires a minimum deposit of 10 per cent, is the same rate, and has no fee.

Total cost on this would be £23,173.

Source: ' This is Money '

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