‘This could also signal the potential for more repricing across the market if conditions remain stable’
Barclays is cutting some mortgage rates from Wednesday, bucking the trend after a flurry of lenders made increases.
The banking giant has stated it will reduce up to 0.20 percentage points off selected residential purchase and remortgage products. Mark Arnold, head of mortgage and savings at Barclays said: “I’m delighted we’re able to decrease core mortgage rates again, after what has been a very volatile period in the swap markets.”
He continued: “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.”
A remortgage product with a rate of 4.3%, down from 4.5%, will be available from Wednesday, complete with a £999 fee and designed for borrowers who can pay 25% equity. In recent weeks, major lenders have been hiking a selection of mortgage rates, citing the swap rate environment.
The Bank of England recently reduced the base interest rate to 4.75% – a quarter-point reduction marking this year’s second rate cut. However, finance experts are expecting rates to reduce more gradually than previously expected amid the wider economic environment.
Nicholas Mendes, mortgage technical manager at John Charcol, said: “Barclays has made a bold move as the first high street lender to cut mortgage rates in response to recent market changes. 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.”
He highlighted some significant cuts, particularly noting, “Some standout reductions include the two-year fixed at 90% loan-to-value (LTV) with no product fee, dropping from 5.49% to 5.39%.
“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.”
Moneyfacts, a financial information provider, reported that the average rate for a two-year fixed homeowner mortgage was 5.53% on Tuesday, slightly down from 5.54% on Monday, while the average five-year fixed mortgage rate held steady at 5.28%.
