Major lender introduces market-leading two-year fixed rates
Barclays has announced significant rate cuts across more than 32 of its mortgage products, with new market-leading rates on its two-year fixed range effective from tomorrow, July 18.
The lender’s reductions span residential purchase, remortgage, and green home products, with highlights including the two-year fixed rate at 60% loan-to-value (LTV) dropping from 3.88% to 3.75% for Premier customers and from 3.89% to 3.76% for standard products.
Five-year fixed rates now begin at 3.90% for Premier customers at 60% LTV, with standard and fee-free options at 3.91% and 3.99% respectively.
Barclays has also reduced rates on its Green Home range, with two and five-year fixes starting at 3.81%. For remortgages, a Premier two-year fix at 60% LTV is now 3.78%. The lender’s Reward range for existing customers sees two-year fixed rates from 3.78% with a £999 fee.
The changes come as major lenders compete more aggressively on pricing, intensifying the ongoing mortgage rate war. Barclays’ move is expected to put further pressure on rivals to follow suit as brokers and borrowers seek the best available deals.
Meanwhile, several specialist lenders have also announced new rate cuts.
The Mortgage Works has reduced rates by up to 0.30% on selected buy-to-let products for existing customers. The changes include a two-year fixed rate at 2.78% with a 3% fee up to 65% LTV, and reductions across limited company and five-year fixed options.
Foundation Home Loans has announced enhancements to its residential product range, including rate reductions of up to 50 basis points (bps) across its F1 to F4 tiers, up to 15bps off Green products, new 90% LTV fixed rates, and expanded support for key workers, reinforcing its focus on underserved borrowers.
ModaMortgages is also cutting rates by 5bps on limited edition five-year fixed products for single dwellings, HMOs, and multi-unit freehold blocks, with rates now starting at 4.64% for single dwellings and 4.74% for HMOs and MUFBs at 75% LTV. The lender continues to offer a range of fee options and free valuations.
Aspen Bridging, meanwhile, has enhanced its refurbishment funding offer by reducing rates and increasing LTVs. Its 80% Heavy Refurbishment product now stands at 0.78% per month, with stepped rates from 0.39% per month. The No Valuation Refurbishment product now offers 80% LTV at 0.83% per month, alongside service improvements such as docusign legals and 48-hour drawdowns.
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