Several other lenders also announce rate cuts
Barclays has announced rate reductions across its residential purchase and remortgage products, with select offerings dropping below 4% from tomorrow, February 13.
Among the updates, Barclays’ green home five-year fixed mortgage for residential purchases, which carries a £899 product fee, will decrease by 14 basis points (bps) from 4.13% to 3.99%.
For remortgages, the premier two-year fixed rate at 60% loan-to-value (LTV), with a £999 product fee, will be cut from 4.46% to 4.20%; while in the buy-to-let segment, Barclays is reducing its two-year fixed remortgage rate at 75% LTV, with a £1,795 product fee, from 5.46% to 5.01%.
The high street bank, one of the largest mortgage lenders in the UK, will also introduce a new five-year fixed mortgage for residential purchases at 3.99%, featuring a £899 product fee at 60% LTV. Loan amounts will range from £5,000 to £2 million.
Barclays follows Santander, which became the first major UK lender this year to announce mortgage rates below 4%. Santander launched a selection of two- and five-year fixed deals at 3.99% for borrowers with a 60% LTV, available for both home purchases and remortgages.
Other big lenders are also adjusting pricing. Halifax Intermediaries will introduce 1.5-year fixed remortgage products with conveyancing services included while increasing tracker rates by up to 0.18%.
NatWest will adjust rates across various mortgage products, effective today, February 12, with reductions of up to 36bps on remortgages and up to 16bps on purchases, including high-value and green mortgages.
TSB, from tomorrow, is reintroducing its five-year fixed First-Time Buyer and Home Mover products at 90-95% LTV, with rates starting at 5.39% and £500 cashback. Other reductions include a decrease of up to 10bps on two-year fixed first-time buyer and home mover mortgages up to 75% LTV and a 10bps reduction for those at 90-95% LTV. Two-year fixed remortgage products up to 75% LTV have been cut by up to 0.15%, while five-year fixed remortgage products up to 75% LTV are down by 0.10%. Following the Bank of England’s base rate cut, TSB has applied a 25bps decrease to its tracker rates for new customers.
Coventry for intermediaries has also announced lower fixed rates across its 90-95% LTV purchase and remortgage products.
Several specialist lenders have also made rate reductions. Landbay has cut rates by up to 30bps across its range, with its small house in multiple occupation (HMO)/multi-unit freehold block (MUFB) five-year fixed now starting at 5.04% at 75% LTV. Its limited edition range, including AVM-supported products, has also been reduced by 20bps, with standard five-year fixed rates now starting at 4.69%.
Funding 365 has lowered interest rates for its unregulated residential bridge and light refurbishment products, now starting at 0.69% per month up to 65% LTV and 0.79% per month up to 75% LTV.
Fleet Mortgages, a buy-to-let specialist, has also cut rates by up to 25bps on its five-year fixed HMO and MUFB products. The 65% LTV five-year fixed rate has been reduced to 5.59%, while the 75% LTV five-year fixed rate with a 3% fee has been lowered to 5.39%. The zero-fee 75% LTV five-year fixed rate has been cut to 5.89%.
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