Major lender reduces interest rates by up to 50 basis points
Barclays has announced a series of rate reductions across its residential mortgage range, covering purchase, remortgage, Green Home, and existing customer products.
Among the purchase products, the most notable reductions include the two-year fixed rate at 60% loan-to-value (LTV) with no product fee, which falls from 4.83% to 4.78%, and the five-year fixed rate at 60% LTV with a £899 fee, which drops from 4.67% to 4.58% — a reduction of nine basis points (bps). At 90% LTV, the five-year fixed rate with a £899 fee decreases from 4.95% to 4.85%.
The most significant reductions in the purchase range are on 10-year fixed products. The £999 fee rate at 60% LTV falls by 50bps from 5.62% to 5.12%, while the equivalent at 80% LTV drops by the same margin, from 6.03% to 5.53%.
On the remortgage side, the two-year fixed rate at 60% LTV with a £999 fee moves from 4.78% to 4.69%, while the equivalent product at 75% LTV falls from 4.88% to 4.75%. Barclays' Great Escape two-year fixed rate at 60% LTV with no product fee sees the largest remortgage reduction, dropping 13bps from 5.10% to 4.97%.
Barclays has also introduced a new remortgage product: a three-year fixed Great Escape deal at 4.88% with no product fee, available at 60% LTV with a minimum loan of £50,000 and a maximum of £2 million.
Rate cuts have also been applied to the Existing Customer Reward range and Green Home products.
"Recent market volatility means many homeowners have understandably been keeping a close eye on mortgage rates," said Jatin Patel (pictured right), head of mortgages, savings and insurance at Barclays. "We are pleased to announce a number of rate reductions live today across our mortgage range
"However, it's important that homeowners know they don't always need to hold off on decisions while they wait for rates to change. Many lenders, including Barclays, offer the option to secure a new mortgage up to 90 days before end of their current deal, with the flexibility to switch if a better rate comes along. In periods of uncertainty this can help provide peace of mind for consumers looking to plan their next move."
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