Major lender reprices as swap markets shift amid global tariff tensions
Barclays has reduced rates on a range of fixed term mortgage products, becoming the largest UK bank so far to adjust pricing in response to shifting global economic signals and speculation over interest rate cuts.
From Friday, April 11, the bank’s two-year fixed mortgage at 60% loan-to-value (LTV), currently priced at 4.11% with a £899 product fee, will decrease to 3.99%. The deal is available on loans between £5,000 and £2 million. Its five-year fixed mortgage at the same LTV, also with a £899 fee, will drop from 4.12% to 3.99%.
The high street lender is also cutting the rate on its Mortgage Guarantee two-year fixed product at 95% LTV. This product, which carries no fee and is available for loans ranging from £25,000 to £570,000, will fall from 5.28% to 4.90%.
The move follows similar reductions from a number of lenders this week, including TSB, Coventry Building Society, the Co-operative Bank and Bank of Ireland, as mortgage providers respond to fluctuating financial market conditions.
The repricing comes as analysts increasingly anticipate the Bank of England will cut its base rate more aggressively than previously forecast. The central bank’s main rate currently stands at 4.5%, but market expectations now point to as many as four rate reductions this year. This shift has been driven by concerns that recent tariff measures introduced by US President Donald Trump could weigh on global growth.
Although Trump has temporarily halted some of the steepest tariffs imposed since returning to office, financial markets remain cautious. The ripple effects have already been felt in swap rates — the financial instruments that lenders use to price fixed mortgages — which dropped earlier this week before slightly rebounding on Thursday.
Data from Moneyfacts shows that average mortgage rates are edging down. The typical two-year fixed rate fell from 5.3% to 5.29% on Thursday, while the average five-year rate eased to 5.14% from 5.15%.
Barclays, one of the UK’s largest mortgage lenders, has also rolled out several initiatives aimed at supporting borrowers in a tough market. These include zero-deposit mortgages for Right to Buy applicants, a scheme known as Mortgage Boost, and increased loan caps for high loan-to-value purchases.
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