Barclays will unveil two Help to Buy mortgages tomorrow (21 January) as competition gathers pace for new homebuyers.
The bank will offer 95% loan-to-value mortgages at three-year and five-year fixed-rate terms with no fee.
The three-year fix will be available at 5.35%, with the five-year deal costing 5.49%.
The three-year deal is more costly than the majority of Help to Buy deals available at shorter terms, though it does offer the security of an extra year.
RBS, NatWest, and Santander are offering two-year fixed-rate deals at 4.99%, while HSBC is offering a two-year fix at 4.79% with a £99 fee.
Some of these deals also offer impressive perks, with Santander offering free valuation fees, £250 in cashback, and 1% cashback on mortgage payments every month for 123 current account holders.
New homebuyers interested in the shorter-term deal from Barclays will have to weigh up whether to take on the extra cost for the security of a third year at 5.35%.
At 0.36% above the majority of two-year deals, repayments on a mortgage of £150,000 would cost around £32 more per month – an extra £761 over the first two-years.
The five-year fix from Barclays, at 5.49%, is in line with its major Help to Buy competitors, matching RBS, NatWest, Halifax, and Santander.
Andy Gray, managing director of mortgages for Barclays, said: "We're pleased to be joining the Government's Help to Buy mortgage guarantee scheme and supporting first-time buyers and home movers get on, or move up, the housing ladder."
"This builds on our existing and on-going participation under the Help to Buy equity scheme."
Find out more about the Help to Buy scheme here.
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