Once your mortgage has come to the end of its deal period you'll be placed onto the current standard variable rate (SVR) as a Barclays customer. You can also take out a direct SVR product with Barclays, although there may be better alternatives available.
The current standard variable rate (SVR) for Barclays mortgages is 8.74%. Barclays name this their "Follow on Rate" calculated at 3.49% plus the BEBR (Bank of England Base Rate). This SVR tracks the Barclays Bank Base Rate (BBBR) which is usually the same as the Bank of England Base Rate but is not guaranteed to be the same.
Although an initial rate may sound enticing it's the standard variable rate you are placed on afterwards which may be the most important as this is where most mortgages end up. It's slightly different with Barclays mortgages because their tracker rates are for life so they never revert to the SVR.
If your circumstances change between when you take out a product to when it gets renewed several years later then you may not be in a position to get similar terms. For example, if you lose your job or you have a child and one parent does not work any longer.
That's just the reason why lenders publish an APR because this takes into account the initial generally discounted rate as well as the SVR for the term of the mortgage loan.
Whilst the initial rates offered by Barclays are actually some of the best deals in the industry and market place you should perhaps consider not only the arrangement fees that are now charged by all lenders, the repayment penalties if you decide to pay off your loan or have to move house but also the standard variable rate you may have to pay if you don't remortgage once your deal period has completed.
With so many products on the market it may be easy to choose the lowest headline rate but once you have added in arrangement fees and any additional charges the rates offered by all companies including Barclays may push up the actual cost of the mortgage. Therefore it may be prudent to either use a comparison website and certainly to get professional advice to help your decision making process.
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