It becomes first high street lender to reduce rates in recent weeks
Barclays has announced rate reductions on a selection of products by as much as 20 basis points (bps) across its residential purchase and remortgage range, effective from tomorrow, November 27.
The changes was made in response to easing swap rates and improving market conditions, making it the first major lender to adjust rates in recent weeks.
Among its purchase products, the two-year fixed rate at 75% loan-to-value (LTV) with a £899 product fee will decrease from 4.46% to 4.36%, while the two-year fixed rate at 85% LTV with a £899 product fee will drop from 4.94% to 4.84%. In addition, the two-year fixed rate at 90% LTV with no product fee will go down from 5.49% to 5.39%.
In the remortgage range, the Great Escape two-year fixed rate at 60% LTV with no product fee will be reduced from 4.72% to 4.62%. A five-year fixed rate at 60% LTV with a £999 product fee will decrease from 4.37% to 4.17%, while a five-year fixed rate at 85% LTV with a £999 product fee will drop from 5.27% to 5.07%.
“I’m delighted we’re able to decrease core mortgage rates again, after what has been a very volatile period in the swap markets,” said Mark Arnold, head of mortgage and savings at Barclays. “As we have done during the course of this year, when we see an opportunity in the swap markets we will act swiftly to pass on the benefit to our mortgage customers.”
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, also commented on the significance of Barclays’ move.
“Barclays has made a bold move as the first high street lender to cut mortgage rates in response to recent market changes,” Mendes said. “With swap rates easing over the past couple of days, it’s great to see a lender acting quickly to reflect the slightly improving conditions.
“While these reductions won’t change the world, they do offer a bit of breathing room for borrowers, especially after the recent trend of rising rates among high street lenders. This could also signal the potential for more repricing across the market if conditions remain stable. It’s a small but positive step in the mortgage landscape, bringing a glimmer of hope to those navigating the current borrowing climate.”
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