Barclays fee-free Great Escape mortgage is designed to hook borrowers by beating rivals' standard variable rates.
On the hook: Barclays is looking to tempt borrowers away from their current lender
And it has an extra lure in allowing them to jump from a cheap tracker to a fixed rate if rates start heading up rapidly.
The Great Escape mortgage is a fee-free tracker deal at base rate plus 2.18% for those with 30% equity in their home.
And it allows remortgagers to hedge their bets by ditching the tracker for a Barclays fixed rate with no early repayment charges at a later date.
The mortgage comes with no application fee, free legal work and valuation and £300 cash back.
There is no early repayment charge if you switch to a Barclays fixed rate mortgage, but moving to another Barclays variable rate deal or another lender will cost you 1% of the outstanding mortgage until the end of February 2013.
This is Money says: If you can raise the required 30% equity in your home, then Barclays is offering a cracking deal. The rate rivals some of the top tracker deals around and crucially allows borrowers to swap to a fixed rate if they fear interest rates are suddenly about to shoot up.
The caveat is that this fixed rate has to be a Barclays deal – go elsewhere and you incur a 1% early repayment charge. You may find that if you do decide to jump ship to a fixed rate, Barclays isn't offering the best around – but at least this offers a hefty amount of insurance against rapidly rising rates.
If you are on an SVR that is higher than 2.68%, and can get this deal it is well worth considering. Those on a fixed rate elsewhere should remember they may have to pay early repayment charges and most of those with a long-standing tracker rate mortgage would be paying less than this anyway.
This is Money rating: Four-and-a-half out of five stars
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