Rate cuts continue for one of the UK’s largest lenders
Barclays has announced rate reductions on a selection of residential mortgage products by up to 0.50%, effective from tomorrow, October 11.
The cuts will apply across its residential purchase and remortgage offerings, including products with varying loan-to-value (LTV) ratios and fixed-term lengths.
For residential purchase products, Barclays will lower rates on its two- and five-year fixed rate mortgages. For instance, the Premier two-year fixed mortgage with a 60% LTV and a £899 product fee will see its rate decrease from 3.96% to 3.87%. Similarly, a two-year fixed rate product with no fee and a 60% LTV will drop from 4.35% to 4.19%.
Other notable changes include the Premier two-year fixed mortgage at 75% LTV, which will reduce from 4.44% to 4.09%, and the five-year fixed rate product with an £899 fee at 75% LTV, which will be repriced from 4.17% to 4.10%.
Barclays – one of the UK’s largest mortgage lenders – will also cut rates on its remortgage offerings. For example, a two-year fixed remortgage with a 60% LTV and a £999 product fee will drop from 4.16% to 3.96%, while a five-year fixed remortgage with the same LTV and fee structure will decrease from 3.93% to 3.85%.
The lender’s Great Escape remortgage products, designed for those switching lenders, will also see reductions, with rates dropping by as much as 0.29%.
The high street bank will also reduce rates in its Green Home mortgage range, aimed at eco-friendly properties. The Green Home two-year fixed mortgage at 60% LTV with no product fee will go down from 4.25% to 4.09%.
The latest rate adjustments come as Barclays continues to compete in a market impacted by a mortgage rate war among major lenders. The competition intensified following the Bank of England’s base rate cut in August, the first since the pandemic. Barclays has made several pricing changes over the past few months, with the latest update just last week when the lender reduced interest rates by up to 0.30% across its residential purchase-only range.
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