Lender's move follows a week of widespread repricing across the market
Barclays has reduced rates across its residential purchase and remortgage ranges by as much as 66 basis points (bps).
The lender's steepest cuts apply to purchase-only deals. A two-year fixed rate at 90% loan-to-value with no arrangement fee dropped by 0.66%, from 5.45% to 4.79%. The equivalent Green Home version of the product was cut, from 5.35% to 4.69%.
At 85% LTV, a fee-free two-year fixed rate under the Premier range dropped by 62bps, from 5.35% to 4.73%. More broadly, two-year fixed rates at 60% LTV are now available from 4.25% with an £899 fee, or 4.45% on a fee-free basis.
Two-year fixed rates at 85% LTV fell by 47bps to 4.61% with the £899 fee, or by 62bps to 4.78% without a fee. At 90% LTV, the equivalent rates decreased by 61bps to 4.64% with a fee, and by 66bps to 4.79% fee-free. A fee-free two-year fixed rate at 95% LTV was cut by 39bps to 5.11%.
Three-year fixed rates at 90% and 95% LTV saw smaller reductions of up to 23bps, bringing them to 4.99% and 5.09% respectively, each with an £899 fee.
Selected five-year fixed rates between 85% and 95% LTV also fell by up to 11bps, and equivalent Green Home two- and five-year fixed rates were reduced by up to 66bps.
Within Barclays' remortgage-only range, two-year fixed rates at 60% LTV dropped by 15bps. The Premier product is now priced from 4.39%, with the standard product from 4.42%, both carrying a £999 fee. Selected two- and five-year fixed rates for existing customers under the lender's Reward range was also reduced, by up to 11bps.
The changes come amid broader repricing activity across the sector this week, with lenders including Halifax, Nationwide and Coventry Building Society also announcing rate reductions.
"Barclays' latest round of cuts is welcome news for borrowers, particularly on the purchase side where some rates have come down by over half a percent," commented Nicholas Mendes (pictured right), mortgage technical manager at broker John Charcol.
"However, this could be one of the last rounds of cuts we see for a while. Swap rates, which lenders use to price fixed mortgage deals, have risen sharply over the past few days following renewed conflict in the Middle East and the sharp jump in oil prices that's come with it."
"For borrowers with a fixed rate ending in the next six months, it's worth reviewing options now rather than waiting, as many lenders allow you to secure a new rate in advance and switch to a cheaper one later if rates fall before your current deal ends," he said. "Those further out from renewal should keep a close eye on developments over the coming weeks, as the picture could shift quickly depending on how the conflict progresses.
"Given how much is moving at once, geopolitical risk, oil prices, swap rates and the Bank of England's next move, speaking to a broker is the best way to understand how these factors apply to your specific circumstances and to make sure you're not caught out by a sudden rate change."
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