Major lender joins rivals in lowering rates as market competition heats up
Barclays has announced it will implement a wide set of mortgage rate reductions, effective tomorrow, July 9, across both new and existing residential and buy-to-let products. The change includes revised pricing for first-time buyers, home movers, remortgage clients, and high-value loans.
The high street lender will introduce two new three-year fixed-rate residential purchase products: one at 4.04% with no product fee at 60% loan-to-value (LTV), and another at 4.09% with a £899 fee at 75% LTV.
In the remortgage segment, several existing residential products are being reduced. For example, the 85% LTV two-year fixed rate with a £999 fee will fall from 5.19% to 4.67%, while the five-year fixed at the same LTV and fee will drop from 4.97% to 4.52%. Barclays’ fee-free Great Escape five-year fixed option at 85% LTV will reduce from 5.07% to 4.62%.
Large loan options are also seeing cuts. A two-year fixed at 60% LTV for loans above £2 million will fall from 4.21% to 3.91%, with other reductions across 70% and 75% LTV tiers. Five-year large loan rates are also decreasing, including a drop from 4.09% to 3.99% at 60% LTV.
Barclays, one of the UK’s largest mortgage lenders, is also adjusting its buy-to-let offering. A 60% LTV two-year fixed product for loans above £1 million will drop from 4.85% to 4.35%. The five-year fixed version will be cut from 4.65% to 4.15%. Purchase-only and remortgage-only options at 75% LTV are also being lowered, as are rates for green home buy-to-let products.
For existing customers on the Barclays Reward range, the bank is launching a new five-year fixed rate at 3.92% for 60% LTV loans with a £999 product fee. Meanwhile, several existing Reward deals are being reduced. For instance, a three-year fixed rate at 60% LTV will move from 3.98% to 3.95%, and large loan Reward products at 70% LTV will fall below the 4% mark.
Buy-to-let Reward deals are also part of the changes. Rates on two- and five-year fixed options at various LTV bands, including over 75%, are being lowered, with the largest cuts reaching up to 0.6 percentage points.
“These latest reductions will provide a further boost for first-time buyers and homeowners,” said Benjamin Pfeffer, vice president for external communications at Barclays UK. “Data from the latest Barclays Property Insights report reveals that consumer spending on rent and mortgages reduced for the fourth consecutive month in June, as Barclays and the wider market continue to lower mortgage rates.”
The latest mortgage product update from Barclays comes amid rising competition among lenders. HSBC recently cut rates twice in two weeks, joining other major banks such as Santander, Halifax, and Nationwide in adjusting pricing.
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