Market-wide rate increases persist as lenders adjust to shifting conditions
Barclays has announced a new round of rate increases as mortgage rate hikes continue across the market, including among major lenders.
The changes, effective from tomorrow, 25 March, cover residential purchase, residential remortgage, purchase and remortgage, and buy-to-let, and also apply to the lender’s existing customer reward range.
The repricing follows an earlier move last week, when Barclays raised rates by 0.15% across 62 residential mortgage products spanning its purchase-only, remortgage-only and existing customer reward ranges.
In residential purchase-only, two-year fixed rates are set to rise across 60% to 95% LTV, affecting both fee and fee-free options. Examples include a 60% LTV two-year fix moving from 4.25% to 4.60% and a 75% LTV two-year fix rising from 4.31% to 4.66%. Five-year fixed purchase products will also increase, including a 60% LTV five-year fix moving from 4.55% to 4.80%.
Green home residential products will be repriced higher, with a 60% LTV two-year fix rising from 4.35% to 4.70% and a 60% LTV five-year fix moving from 4.45% to 4.70%. Springboard products will also rise, including 95% LTV increasing from 5.07% to 5.32% and 100% LTV from 5.39% to 5.64%.
In residential remortgage-only, fixed rates will increase across two-, three- and five-year terms. Standard two-year fixes include 60% LTV rising from 4.31% to 4.66% and 85% LTV from 4.79% to 5.14%. The Great Escape remortgage range will also increase, including a 60% LTV two-year fix moving from 4.55% to 4.90% and a 60% LTV five-year fix from 4.75% to 5%.
For larger loans, Barclays will lift rates on purchase-and-remortgage products with minimum borrowing from £2m. A 60% LTV two-year fix rises from 4.36% to 4.71%, while a 60% LTV five-year fix moves from 4.53% to 4.78%. Ten-year fixed rates will also increase, including a 60% LTV ten-year fix from 5.10% to 5.35%.
In addition, buy-to-let rates will rise across purchase-only, remortgage-only and purchase-and-remortgage ranges. A purchase-only two-year fix at 75% LTV will increase from 4.58% to 5.13%, while a remortgage-only two-year fix at 60% LTV will move from 4.28% to 4.83%.
The existing customer reward range will also be repriced upwards across residential and buy-to-let. Examples include a residential one-year fixed at 60% LTV rising from 4.48% to 4.83%, and a buy-to-let two-year fixed at 65% LTV (fee-paying) increasing from 4.00% to 4.55%.
Recent weeks have seen a fresh round of mortgage repricing as lenders respond to volatile funding markets, with sharper moves in gilt yields and swap rates feeding through to fixed-rate pricing. Some experts have also linked the jump in swap rates to heightened energy-market uncertainty tied to the Middle East conflict, which has pushed up wholesale funding costs and prompted rapid rate-sheet changes across major brands.
“The mortgage rate hikes just keep on coming through, and there are no real signs they are going to stop any time soon,” commented Aaron Strutt, product director at Trinity Financial. “Taking a tracker rate at the moment seems like a sensible option for many borrowers.”
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