Barclays cuts mortgage rates

Barclays has revealed that it will be lowering rates on certain products by up to 20 basis points (bps) within its residential purchase and remortgage offerings, starting tomorrow, November 27.

The adjustments were implemented due to falling swap rates and better market conditions, marking it as the first significant lender to change rates in recent weeks.

In its range of buying options, the two-year fixed-rate mortgage for a 75% loan-to-value (LTV) ratio, which has an £899 product fee, will be lowered from 4.46% to 4.36%. Similarly, the two-year fixed-rate mortgage for an 85% LTV with the same £899 product fee will see a decrease from 4.94% to 4.84%. Additionally, the two-year fixed-rate mortgage at a 90% LTV with no product fee will reduce from 5.49% to 5.39%.

In the realm of remortgaging, the Great Escape offers a two-year fixed rate at 60% loan-to-value (LTV) with no product fee, which will go down from 4.72% to 4.62%. Additionally, a five-year fixed rate at 60% LTV that has a £999 product fee will see a reduction from 4.37% to 4.17%. Similarly, a five-year fixed rate at 85% LTV with the same £999 product fee will fall from 5.27% to 5.07%.

"I'm thrilled that we can lower core mortgage rates once more, especially after such a turbulent time in the swap markets," remarked Mark Arnold, who leads the mortgage and savings division at Barclays. "Throughout this year, we've been quick to respond whenever we spot favorable conditions in the swap markets, ensuring that our mortgage customers reap the benefits."

Nicholas Mendes, who is the mortgage technical manager and marketing leader at John Charcol, also shared his thoughts on the importance of Barclays' decision.

"Barclays has taken a significant step as the first major bank on the high street to lower its mortgage rates following recent shifts in the market," Mendes stated. "As swap rates have declined in the last few days, it's encouraging to see a lender respond swiftly to these slightly better conditions."

“Although these decreases aren't going to revolutionize the industry, they provide some relief for borrowers, particularly following the recent increases in rates from main street lenders. This may indicate a chance for further adjustments throughout the market if things stay consistent. It’s a modest but encouraging move in the mortgage sector, offering a ray of hope to individuals dealing with the current borrowing environment.”