Major lender trims fixed rates across purchase and remortgage ranges, with steeper cuts at higher LTVs
Barclays has lowered rates on a range of residential mortgage products, covering purchase, remortgage and existing customer reward offerings.
Within its purchase-only range, the two-year fixed rate at 60% loan-to-value (LTV) has been cut from 4.60% to 4.39% with an £899 fee, and from 4.79% to 4.64% on the fee-free option. Three-year fixed rates have been reduced at both 90% and 95% LTV: the 90% LTV product with an £899 fee moves from 5.38% to 5.25%, while the 95% LTV equivalent has fallen from 5.85% to 5.42%.
Five-year fixed purchase rates have been cut by up to 0.19% at 85–95% LTV, with the 90% LTV Premier product now available from 4.75%, the standard rate with an £899 fee at 4.95%, and the fee-free option at 5.15%. Selected Green Home two and five-year fixed rates have also been slashed by up to 0.19%, with the two-year fixed at 60% LTV and no fee moving from 4.69% to 4.54%.
For remortgage customers, the two-year fixed rate at 60% LTV with a £999 fee has been reduced from 4.83% to 4.66%, and the equivalent at 75% LTV has decreased from 4.90% to 4.73%. The five-year fixed remortgage rate at 60% LTV with a £999 fee has reduced from 4.83% to 4.65%. Selected 'Great Escape' two and five-year fixed rates have been cut by up to 0.18%, with the two-year fix at 60% LTV and no fee dropping from 5.01% to 4.83%.
In Barclays' existing customer Reward range, five-year fixed rates at 60% LTV have been reduced to 4.65% with a £999 fee and 4.83% on a fee-free basis.
"Barclays' rate cuts are a welcome move and show how quickly lender pricing can shift when funding conditions improve," commented Nicholas Mendes (pictured right), mortgage technical manager at mortgage broker John Charcol. "The cut to its 95% LTV three-year fixed rate is particularly notable, as higher LTV borrowers have had fewer meaningful improvements compared with those with larger deposits. For first-time buyers, even a small reduction can make a difference to affordability and monthly payments.
"That said, borrowers should not assume this is a one-way trend. Mortgage pricing remains sensitive to swap rates, inflation expectations, and wider geopolitical events, so products can be repriced at short notice.
"For anyone buying or remortgaging this year, the sensible approach is to secure a rate early, keep it under review, and switch to a better option before completion if the market continues to improve."
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