Barclays announces fixed mortgage rate cuts
Barclays has announced significant reductions in its fixed-rate mortgage products, with cuts of up to 0.5%. These reduced rates will be available across the bank’s residential purchase and remortgage range, including a 0.37% reduction on its Great Escape 2-year fixed product and further cuts on other 2-year fixed offerings
Barclays has announced significant reductions in its fixed-rate mortgage products, with cuts of up to 0.5%.
These reduced rates will be available across the bank’s residential purchase and remortgage range, including a 0.37% reduction on its Great Escape 2-year fixed product and further cuts on other 2-year fixed offerings, effective from 23rd January 2024.
Key changes include the Great Escape 2-year fixed mortgage, with no product fee and a 60% loan-to-value (LTV), where the minimum loan starts at £50,000 and the maximum at £2m.
This product will see a rate reduction from 4.81% to 4.51%. Additionally, the 2-year fixed mortgage with a £999 product fee, also at 60% LTV, with loans ranging from £5,000 to £2m, will see rates drop from 4.69% to 4.34%.
For higher LTVs at 75%, with similar loan ranges and fees, the rate will decrease from 4.77% to 4.42%.
Reaction
Justin Moy, managing director at EHF Mortgages:
“This is a barnstorming challenge from Barclays to the rest of the market, with sizeable cuts across their fixed rates. Importantly, shorter 2-year deals are edging ever closer to the magic sub-4% target. With increased appetite from those moving home and refinancing, Barclays are currently in the middle of the ring swinging a right hook at the others.”
Ranald Mitchell, director at Charwin Private Clients:
“Big improvements today in Barclays 2-year pricing, showing they are committed to staying at the front end of the mortgage interest rate race. Inevitably, a response will follow from their immediate competitors, in the unprecedented battle for business unlike anything any of us have ever seen.”
Lee Gathercole, co-founder at Rebus Financial Services:
“The rate war continues. These are fantastic 2-year deals. It’s great to see a big high-street lender like Barclays pushing the headline rates. This is only good news for home movers and current homeowners. Long may the fight for the top spots continue.”
Charles Breen, founder at Montgomery Financial:
“What a great start to the week. As each day passes, mortgage lenders are becoming more confident in the stability of the current market.
“Barclays have made several cuts in quick succession so it shows a real appetite to lend and is fantastic news for the borrowers and the wider property market.
“It wasn’t that long ago that we saw lenders only dipping their toe into rate reductions, but now we are seeing some lenders dive head-first and offering larger reductions.”
Elliott Culley, director at Switch Mortgage Finance:
“Amazing to see Barclays making further reductions for borrowers. Barclays have taken the bull by the horns and have firmly established themselves as trendsetters this January. The two year fixed rate is extremely sort after among borrowers currently so these product changes are bound to be popular.”
Ken James, director at Contractor Mortgage Services:
“Barclays is making another statement of intent with good rate reductions being announced, but the rate cuts are starting to sound like a broken record. Clients see the reductions but brokers continue to see the amount of work this creates.
“No broker wants a client to pay more than they have to for any deal, and we will always endeavour to get the very best rate secured when they change, but the sheer volume of rate changes is starting to weigh down most brokers. I wonder how much further they could reduce before lenders start to hit rock bottom.”
Katy Eatenton, mortgage & protection specialist at Lifetime Wealth Management:
“This is a great start to the week, especially after the slight increase in swap rates last week and the increase in inflation. Barclays are leading the way for other high street lenders to follow with their 2-year rates. Unfortunately, we’re still waiting for a reprice from Nationwide.”
Ben Perks, managing director at Orchard Financial Advisers:
“The excitement and relief felt when a big lender reduces their rates hasn’t died off yet. Great news to see this morning.
“After last week’s cuts from almost all major lenders, it’s great to see the competition is still going and the race to sub 4% 2-year fixed deals is still on! This is more welcome news for borrowers and I hope they keep on coming.”
Rhys Schofield, brand director at Peak Mortgages and Protection:
“More shots fired in the rate war. This is impressive stuff from Barclays, coupled with a real improvement seen by brokers in their service levels and processing over the last year or so. 2024 could be a big year for Barclays who clearly want a bigger slice of the market and are putting their money where their mouth is.”
Rita Kohli, managing director at The Mortgage Stop:
“Another positive start to the week to take away the Monday blues. With all the mixed signals from the latest economic figures you maybe could have forgiven lenders from making further cuts but credit to Barclays. Most of the big players, except Nationwide, have now made several reductions in the last few weeks so hopefully we will see this trend continue for a while longer.”
