Mortgage relief as major lender to slash rates below 4 per cent
Barclays will cut some mortgage rates below four per cent from Friday, as average fixed rates on offer fall more widely.
From Friday, the bank will offer a two-year fixed-rate mortgage at 3.99 per cent, down from 4.11 per cent, to home buyers with a 40 per cent deposit. It includes a fee of £899.
A five-year fixed-rate at 3.99 per cent, reduced from 4.12 per cent, will also be available from Friday for borrowers with a 40 per cent deposit, and the same fee of £899.
There will also be some mortgage rate reductions for Barclays Premier customers.
A two-year fixed-rate Barclays Premier mortgage will be reduced from 4.10 per cent to 3.98 per cent for home buyers with a 40 per cent deposit. The deal also has a fee of £899.
A five-year Premier mortgage rate will reduce from 4.11 per cent to 3.98 per cent. The deal has a £899 product fee and is available to home buyers with a 40 per cent deposit.
A three-year Premier deal at 4.32 per cent will reduce to 3.99 per cent for borrowers with a 40 per cent deposit, with a £999 fee.
To join Barclays Premier, people need to open a Premier current account, with eligibility for the account including paying in a gross annual income of at least £75,000, or having a total balance of at least £100,000 in savings with Barclays, in Barclays UK investments, or in a mix of both.
Global economic volatility following US President Donald Trump’s unveiling of tariffs has boosted analysts’ expectations that the Bank of England will respond with interest rate cuts.
Hina Bhudia, a partner at Knight Frank Finance, said: “Even with the president’s 90-day reprieve, risks to the growth outlook have clearly risen in the past four weeks. Swap rates (which are used by lenders to price mortgages) have come down during that period to reflect the possibility that the Bank of England cuts rates at least two times, and very likely three times before the year is out.”
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Ian Futcher, a financial planner at wealth manager Quilter, said: “As swap rates have dropped, some lenders have moved to cut mortgage rates, with more likely to follow if market conditions persist.
“Homeowners with variable or tracker deals could benefit further should the Bank of England act.”
According to financial information website Moneyfacts, the average two-year fixed-rate homeowner mortgage rate on the market on Thursday morning was 5.29 per cent, down from 5.30 per cent on Wednesday.
The average five-year fixed homeowner mortgage rate on the market on Thursday morning was 5.14 per cent, down from 5.15 per cent on Wednesday.
Earlier this week, Coventry Building Society’s broker arm, Coventry for Intermediaries, launched a two-year fixed-rate mortgage at 3.89 per cent for borrowers with a 35 per cent deposit, with a £999 fee.
