Virgin Money, Clydesdale Bank, and Leeds BS also unveil rate cuts
Barclays has announced new mortgage rate reductions, with some fixed rate products now falling below 4%, signalling increased competition among lenders as market conditions shift.
The high street lender has introduced a broad set of price cuts across its residential and remortgage ranges, effective from tomorrow, July 11. Among the changes, the Premier two-year fixed remortgage at 60% loan-to-value (LTV) with a £999 product fee will drop from 3.90% to 3.83%. A standard two-year fixed at 75% LTV will fall from 4.14% to 3.99%, while the five-year fixed remortgage at 60% LTV will move from 3.93% to 3.86%.
The bank’s fee-free Great Escape deals have also been adjusted. The two-year fixed at 75% LTV will decline from 4.54% to 4.40%, and the five-year fixed at the same LTV will decrease from 4.22% to 4.13%. Higher-value mortgage options, including the two-year fixed at 75% LTV with a £1,999 fee, will be reduced from 4.14% to 4.05%.
In its Existing Customer Reward range, Barclays – one of the UK’s largest mortgage lenders – has cut several rates including the two-year fixed at 60% LTV with a £999 product fee, which is being lowered to 3.83%. The five-year fixed with no product fee at 60% LTV will be set at 4.00%, down from 4.09%.
“This is our second set of reductions in two days, following a broad range of cuts across 40 products which went live on Wednesday,” said Benjamin Pfeffer, vice president of external communications at Barclays UK. “Of particular note, is the introduction of the joint-lowest rate for two-year fixed remortgages on the market, with a lower product fee.”
Another high street lender, Virgin Money, has introduced rate reductions effective from today. The bank is cutting its 95% LTV five-year fixed fee-saver product by 0.10%, bringing the rate to 4.79%.
Select remortgage deals will be lowered by up to 0.19%, with pricing starting from 4.09%. Adjustments to purchase products include a 0.05% drop on some 80% LTV two- and five-year fixes, and a 0.04% reduction on 75% LTV five-year fixes, which now begin at 4.07%.
Virgin Money’s sister lender, Clydesdale Bank, will also lower a range of rates from tomoreow. Cuts of up to 0.26% will apply across residential, professional and large loan products, covering 65% to 95% LTV. New exclusive purchase and remortgage deals starting from 4.58% will also launch, alongside five-year buy-to-let offers beginning at 4.99%.
Meanwhile, Leeds Building Society has also reduced pricing by as much as 0.40% across multiple product types, including residential, first-time buyer, shared ownership, buy-to-let and interest-only mortgages.
The mutual’s five-year fixed residential product is now offered at 4.94%, down from 5.24%, with no fee and up to 95% LTV. Its first-time buyer three-year fixed has been cut to 5.18%, while a shared ownership two-year fixed has been priced at 5.12% and includes a £500 cashback offer.
These reductions follow similar moves by other major lenders. Earlier this week, HSBC UK made its third set of rate cuts in two weeks, while Nationwide also introduced fresh reductions. The flurry of activity has sparked speculation that another mortgage pricing war may be under way.
“Falling swap rates and a softening outlook from the Bank of England have created the conditions for lenders to move more aggressively,” said Nicholas Mendes, mortgage technical manager at broker John Charcol. “We have begun the next price war.”
For brokers, the shift presents renewed opportunities to support clients seeking better rates, particularly those nearing the end of fixed terms or seeking to refinance. As lenders continue adjusting pricing in response to market signals, borrowers may benefit from more competitive options in the weeks ahead.
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