Clydesdale, Gen H, MPowered, Investec, Paragon and HTB also implement rate cuts
Several lenders, including high street bank Barclays, have announced mortgage rate reductions, offering borrowers a range of new deals amid a shifting market environment.
Barclays has lowered rates across its residential, remortgage and existing customer reward products. Reductions include cuts to purchase-only products, where rates such as the 3.98% Premier two-year fixed at 60% loan-to-value (LTV) has fallen to 3.91%, and the 3.99% two-year fixed at 60% LTV has dropped to 3.92%.
The lender has also reduced rates for remortgage customers, with the Premier two-year fixed at 60% LTV moving from 4.20% to 3.95%. The Great Escape range will see similar adjustments, with the two-year fixed at 60% LTV falling from 4.60% to 4.37%. Within its Existing Mortgage Customer (EMC) Reward range, Barclays has cut the two-year fixed with £999 product fee at 60% LTV from 4.06% to 3.95%, among others.
“After being the first major lender to go sub-4% in April, we’ve brought an additional six products under 4%, including for existing mortgage customers,” said Benjamin Pfeffer, vice president of external communications at Barclays UK. “Our biggest single drop will be 33 basis points, on a remortgage two-year fixed 75%, £999 product fee.”
Mortgage lender Clydesdale Bank is also set to reduce selected residential mortgage rates by up to 0.15%, including two- and five-year fixes for loans between 65% and 75% LTV. Reductions will also apply to 90% purchase exclusive products and large loan exclusives. However, selected buy-to-let (BTL) rates at 60% and 75% LTV will rise by up to 0.09%.
Fintech mortgage lender Gen H has followed its earlier cuts on 2-year fixes by launching further reductions across its five-year fixed range. Rates at 85% and 90% LTV are down by 21 basis points, and the 95% LTV product is lowered by 10 basis points.
Another fintech lender, MPowered Mortgages, has reduced its three-year fixed remortgage rates, now starting from 3.98% for customers with a 40% deposit paying a £999 fee, or 4.27% with no fee. Borrowers will also benefit from £250 cashback or a contribution toward legal costs.
Elsewhere, Investec Bank has announced reductions for high-net-worth residential and BTL customers. Its 60% LTV residential fixed rates now start at 4.25% for a two-year fix and 4.35% for a five-year fix. BTL products at the same LTV start from 4.65% for a two-year fix and 4.75% for a five-year fix.
Meanwhile, specialist lender Paragon Bank has launched limited-edition five-year BTL products, offering its lowest fixed rates since August 2022. Rates start at 4.29% for single self-contained (SSC) properties rated EPC ‘A’ to ‘C’, 4.34% for SSCs rated ‘D’ or ‘E’, and 4.64% for houses in multiple occupation (HMOs). The products are available up to 65% LTV with a 5.00% product fee or a no-fee option at a higher rate.
Hampshire Trust Bank (HTB) has also updated its specialist mortgages proposition by allowing standard BTL rates to apply to qualifying semi-commercial loans. The move targets deals over £5 million where the commercial part of the property does not exceed 20%, supporting brokers working on residential-heavy investments.
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