Barclays has recently unveiled significant cuts across a wide range of its mortgage products, covering both residential purchase options and remortgage deals. This move is part of an ongoing trend among major lenders to remain competitive in an evolving market.
These new reductions apply to several fixed-rate mortgage options, each targeting different loan-to-value (LTV) bands and fee structures. The aim is to offer borrowers, whether first-time buyers or those remortgaging, better value and more affordable monthly payments.
For customers purchasing a new home, Barclays has introduced notable rate cuts on both 2-year and 5-year fixed-rate products. Among these is the 2-year fixed rate at 4.23% with an £899 product fee and an 85% LTV, which will drop to 4.14%.
In addition, a competitive 5-year fixed rate at 4.20% with no product fee and a 60% LTV will fall to 4.09%. This change is designed to appeal to borrowers seeking longer-term stability without having to pay upfront fees.
Other 5-year fixed rates are also being adjusted. The rate with an £899 fee at 75% LTV will be reduced from 4.20% to 4.12%, while the equivalent product with no product fee will now be available at 4.25%, down from 4.30%.
Barclays has also focused on offering better deals to those borrowing at higher LTV levels. For example, borrowers at 75% LTV with a £899 fee will see the 5-year fixed rate drop from 4.38% to 4.21%, and those at 85% LTV without a fee will get a lower rate of 4.29%, down from 4.47%.
At the highest LTV tier of 90%, the Premier 5-year fixed rate with an £899 fee will slightly reduce from 4.17% to 4.33%, and the standard 5-year fixed will go from 4.42% to 4.38%. These changes aim to support a wider range of buyers, including those with smaller deposits.
In addition to standard products, Barclays has also lowered rates on its Green Home mortgages, designed to reward customers purchasing energy-efficient properties. For instance, the 2-year fixed at 85% LTV with an £899 fee will now be 4.04%, down from 4.13%.
Meanwhile, the same Green Home product at 75% LTV will be priced at 4.02%, compared to the previous rate of 4.10%. Longer-term Green Home rates are falling too: the 5-year fixed at 85% LTV with an £899 fee will drop from 4.28% to 4.11%, and the 90% LTV equivalent will reduce slightly from 4.32% to 4.28%.
Those looking to remortgage have also been given fresh incentives. The Great Escape™ 2-year fixed rate with no product fee at 60% LTV will see a significant drop from 4.33% to 4.15%. This product is particularly popular with homeowners hoping to switch without incurring fees.
Barclays is also cutting rates on 3-year fixed-rate deals. The product with a £999 fee at 60% LTV will be reduced slightly from 3.98% to 3.95%, and the same product at 75% LTV with an £899 fee will move from 4.13% to 4.10%.
For Premier customers, the 5-year fixed at 60% LTV with a £999 fee will see a reduction from 4.02% to 3.92%, while the standard equivalent with the same LTV and fee will go from 4.03% to 3.93%. The Great Escape™ 5-year fixed at 60% LTV with no product fee will drop to 4.09%, down from 4.20%.
Commenting on these changes, Nicholas Mendes, mortgage technical manager at John Charcol, explained that lenders are competing fiercely as the summer season approaches. He highlighted how falling swap rates – which significantly impact mortgage pricing – have enabled these rate cuts.
Swap rates have dropped steadily over the past month. For example, the 5-year swap now sits at 3.632%, down from 3.820%, while the 2-year swap has fallen from 3.816% to 3.599%. This movement reflects growing market confidence that the Bank of England may cut the base rate later this year, possibly as soon as August.
Despite these reductions, Mendes urged borrowers not to wait too long in the hope that rates will fall further. Many lenders allow customers to secure a new rate up to six months before their current deal ends, giving them flexibility to lock in a rate now while remaining open to switching later if deals improve.
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