Barclays has introduced further mortgage rate reductions across a selection of products in its residential purchase and reward ranges.
Effective from tomorrow, Friday 17th November, the reductions include new purchase and remortgage 2-year fixed rates.
New residential reductions include a 2-year fixed rate up to 60% loan-to-value (LTV) at 4.80%, with an £899 product fee.
Other reductions include a 2-year fixed up to 60% LTV at 5.20% with zero product fee, and a 2-year fixed up to 75% LTV at 4.95% with a £899 product fee.
Key residential remortgage product changes include a 2-year fixed up to 60% LTV at 4.98% with £999 fee, and a 2-year fixed up to 75% LTV at 5.12% with £999 fee.
Barclays will be updating its intermediary and Reward sheets as of tomorrow, Friday 17th November, to reflect these changes.
Reaction:
Craig Fish, director at Lodestone Mortgages & Protection:
“That’s it, the rate war is well and truly underway now, and more lenders are likely to follow.
“There is a real chance that we could see a sub 4% 5-year fix this side of Christmas, and a 2-year below 4.5% also.
“Swap rates have tumbled this week, and lenders are now going to be slogging it out until the year-end.”
Laura Bairstow, founder at The Mortgage Masters:
“It’s great to see rates under 5% for 2-year fixes. However, they’re only accessible on purchases for buyers who have a minimum 25% deposit.
“Very few first-time buyers will benefit here and that’s what we really need to inject life into the housing market.
“However, this is certainly another step in the right direction so let’s hope more lenders follow suit.”
David Stirling, independent financial adviser at Mint Mortgages & Protection:
“Whilst this is certainly exciting news, are any lenders going to stick their neck out in the higher loan-to-values and get things really moving.
“It would be great winter pick-me-up to see this rate war escalate further and last into spring next year! Come on lenders, let’s see the colour of your money.”
Justin Moy, managing director at EHF Mortgages:
“This is a significant move by Barclays, with sub-5% 2-year deals now available for both remortgages and purchases.
“This will definitely fire up the rest of the high street, and see other lenders battle to keep up with Barclays. Lower inflation and cheaper SWAP rates are driving some major improvements, which is great for those coming to their renewal.
“For those who have already secured their new deal, don’t rely upon your lender to keep you informed of these improving rates.
“Engage with a proactive mortgage broker and make sure you are getting support, and importantly saving a fortune.”
Riz Malik, founder and director at R3 Mortgages:
“Barclays are not certainly not playing games with these rate cuts.
“All eyes are on the Autumn Statement next week where rumours are we may have stamp duty incentives.
“If this is the case, rate cuts plus lower moving costs may light a rocket under this housing market.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“Barclays have thrown a match into the haystack with these rate reductions available on remortgages.
“The lender rate war is going to heat up fast. More reductions will almost certainly follow very soon to the delight of homeowners around the UK.”
Gary Bush, financial adviser at MortgageShop.com:
“For a mainstream lender, like Barclays, to be re-entering the UK mortgage rate price war with a sub-5% remortgage deals is exciting stuff, in what has so far been a nightmare year for mortgage holders.
“This will be the first of many new lower fixed-rate releases as other High Street lenders see this as a potential attack on their market share.
“The end of 2023 and beginning of 2024 looks promising for the property market.”
Gary Boakes, director at Verve Financial:
“The remortgage market is hotting up, which is great for customers giving them more options than just their existing lender.
“The majority of lenders have been reducing rates and given us headline rate at 60% LTV.
“To drop a 2-year fixed at 75% LTV below 5% is something other lenders can’t ignore and we can fully expect a rate war over the next few weeks as lenders give it one last push to hit their yearly targets.”
Darryl Dhoffer, mortgage expert at The Mortgage Expert:
“Let’s spill the beans on why mortgage rates are taking a tumble.
“You might be thinking the banks are being generous, and the real reason is the economy’s gone a bit pear-shaped.
“Inflation is finally on the slide, which means lenders are now gulping cans of Popeye’s finest and reducing rates further.
“What this means is it’s a bloomin’ good time to buy a bleedin’ house or pay less on your mortgage every month.
“Don’t go rushing into buying the first house you see, do your research, make sure it is affordable, or you’ll end up in the debt doghouse.”
Michelle Lawson, director at Lawson Financial:
“This is another good news piece for the consumer. The trend is continuing and should give consumers real confidence.”
Jack Tutton, director at SJ Mortgages:
“Barclays appear to have come out of the blocks early with these latest reductions, they have gone well under the 5% barrier with the headline rate at 4.80% at 60% loan-to-value for new purchases.
“Offering these significant reductions, particularly for new purchase mortgages seems to me that they are trying to simulate the moving market.
“It will be interesting to see if these reductions start to entice people to look at moving in what is typically a slower time in the market.”
Kundan Bhaduri, property developer and portfolio landlord at The Kushman Group:
“Barclay’s rate drop below 5% is a great first step. Brace yourselves for an influx of house hunters in the coming months though.
“The Chancellor’s plan is finally working as Rishi and Jeremy together with the BoE give inflation a good kicking.
“Clearly, the ripple effect of this good news is about to hit the housing scene. We’re talking lower mortgage rates, boosting buyer confidence and turning peoples’ property dreams into reality. But, hang on, it’s not all sunshine and rainbows.
We still have a nationwide puzzle to solve – there’s just not enough housing stock in the market. The demand is soaring, but supply is short.
2024, get ready to witness a property market explosion – not fireworks, but a steady climb in those house prices.
“For the property market to go from zero to hero, we need inflation to keep doing its disappearing act.
“And how about the Bank of England throwing in a rate cut for good measure? That’s the secret sauce we need to supercharge the housing game in 2024.”
Gareth Davies, director at South Coast Mortgage Services:
“This is a significant move by Barclays today.
“They’ll now source top for many, many products over the coming days. Nationwide, NatWest, Santander et al…. over to you.”
Samuel Ewen, managing director at Rosehill Financial Services:
“Barclays’ introduction of sub-5% 2-year fixed rates is a bold move.
“When opening the email from them, I expected these rates to be limited to the 60% loan-to-value range.
“However, the availability of a purchase product at the 75% range makes it more achievable for some.”
Ben Tadd, director at Lucra Mortgages:
“The good news keeps coming for mortgage borrowers as Barclays further ignites the rate war between the Big Six lenders, by releasing sub 5.00% 2-year fixed deals, for both new homeowners and remortgage customers.
“A sure sign of their appetite to lend and a show of intent that will ensure other lenders take notice.
“This latest product move by Barclays will help to ensure the domino effect continues, with other lenders now having to act themselves and reduce their rates to ensure they stay in the game.”
Elliott Culley, director at Switch Mortgage Finance:
“This is an expected move from one of the bigger lenders in the market to remain competitive in a ever changing market space.
“There are some great rates on offer for lower loan to value products, but Barclays remains less competitive for customers with smaller deposits.
“First-time buyers on average will have 10-15% deposits and these new rates will not be market leading in that market space.”
