New pricing includes sub-4% deals
Barclays and Santander have both announced significant reductions to their mortgage interest rates, offering new opportunities for homebuyers and remortgagors amid ongoing market adjustments. The cuts, effective from today, May 13, reflect falling swap rates and increasing competition among lenders.
Barclays has launched its lowest rate of the year at 3.79% on a Green Home five-year fixed mortgage at 60% loan-to-value (LTV). Its most competitive mainstream rate now sits at 3.85%, available on a two-year fix within the bank’s Existing Customer Reward range.
In its residential purchase range, Barclays’ Premier two-year fixed mortgage at 60% LTV is now available at 3.86% with an £899 fee, while the standard equivalent has dropped to 3.87%. Rates at 75% LTV have also fallen, with a two-year fixed Reward product at 3.94% and the standard rate at 3.95%.
For remortgage customers, two- and five-year fixed rates at 60% LTV have dropped to as low as 3.87% and 3.88% for Premier products, respectively, with standard equivalents slightly higher by 0.01%.
Barclays has also made notable changes in its Existing Customer Reward range, where rates across one-, two-, and five-year fixed terms have been reduced. The most substantial cut is a 42-basis-point reduction on a one-year fix at 90% LTV, now available at 5.89% with no fee. Other highlights include sub-4% five-year fixes, with options at 3.86% and 3.99%, depending on fee structure and LTV.
Another major lender, Santander UK, also reduced rates across its product lines, including home mover, first-time buyer, new build, remortgage and buy-to-let mortgages. The lender’s third rate cut in four weeks comes in response to a drop in swap rates.
Among the key changes, Santander’s five-year fixed mortgage at 60% LTV now starts at 3.89%, while a three-year fix is available at 3.94%, both with a £999 fee. First-time buyer rates at 60% LTV begin at 3.89% for two-year fixes, and 3.99% for three- and five-year products. At 95% LTV, a two-year fix with no fee and £250 cashback is now priced at 4.95%. Remortgage customers will see rate reductions of up to 0.18%, with a five-year fixed at 60% LTV now at 3.92%, and a three-year fix at 4.01%.
Meanwhile, Accord Mortgages has also lowered rates across its residential products, citing more stable market conditions. The lender, which distributes exclusively through intermediaries, has dropped two-year fixed rates by up to 0.24%, three-year deals by up to 0.15%, and five-year options by as much as 0.21%.
Notable offers include a two-year fix at 5.18% for up to 95% LTV on purchases, and a three-year fix at 4.91% for up to 90% LTV on remortgages — both with cashback and valuation perks. A five-year fix at 4.15% for up to 75% LTV is also available for remortgagors.
Fintech lender MPowered Mortgages has likewise introduced cuts to its three-year fixed rate offerings. For purchase customers, rates now start at 3.88% with a 40% deposit and a £999 fee, or 4.08% with no fee.
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