Barclays has made significant changes to its remortgage product lineup, reducing rates across a variety of 2-year and 5-year offerings. The adjustments focus on both fixed and variable rates.
For the 2-year Great Escape Fixed product with no product fee and 60% LTV, the rate has been reduced from 5.24% to 4.81%.
Similarly, for the same product at 75% LTV, the rate has dropped from 5.33% to 4.92%. Another notable change is in the 2-year Fixed product with a £999 product fee and 75% LTV, where the rate has been lowered from 5.12% to 4.77%.
Additionally, there are decreases in existing products for residential purchase only, including new builds.
For instance, the Premier 2-year Fixed with a £899 product fee and 60% LTV will decrease from 4.76% to 4.60%.
The standard 2-year Fixed with the same fee and LTV will see a reduction from 4.78% to 4.62%.
On the buy-to-let front there are also reductions. For example, the 2-year Fixed Purchase Only product with a £1295 product fee and 75% LTV will decrease from 6.38% to 6.18%.
Reaction
Brian Keane, director of mortgages at Davidson Deem Ltd:
“This is a barnstormer from Barclays. Reductions in the cost of fixed rate funds, coupled with increasing competition among lenders who all want to start 2024 with a bang, is good news for hard-pressed borrowers at this time. Who will respond next in the ongoing rate war?”
Rob Gill, managing director at Altura Mortgage Finance:
“We are moving ever closer to a mainstream residential mortgage rate starting with a ‘3’ as lenders position themselves to start 2024 with a bang. Barclays are one of the biggest lenders in the country and we expect to see other lenders react accordingly.”
Darryl Dhoffer, mortgage expert at The Mortgage Expert:
“The rate reduction gears keep turning. This is more great news for borrowers from Barclays. It’s encouraging to see Barclays offering further fixed rate reductions across their residential and buy-to-let ranges, especially with some rates dropping by as much as 0.43%. A 5-year fixed rate of 4.32% with a £1999 product fee is certainly a competitive headline offer for residential purchase or remortgage.”
Justin Moy, managing director at EHF Mortgages:
“I’m surprised to see any rate changes in the days up to Christmas, but Barclays are entering into the spirit with these rate cuts across their range. This latest set of changes helps home movers, remortgagors and buy-to-let clients in particular, spreading joy to many, not a few. Whilst SWAP rates continue to improve, we all need to keep an eye on external influences such as fuel costs that can. unwind this good work, so take the opportunity to reserve early, up to 6 months in advance.”
Gary Bush, financial adviser at MortgageShop.com:
“Barclays reducing fixed rates across its mortgage range by up to 0.43% at this time of year is the gift that keeps on giving. This will lead to other lenders following suit. The UK mortgage rate war that has been raging since August goes up a gear as we move into 2024, which will help to kick off New Year activity for both purchases and remortgages.”
Charles Breen, founder & director at Montgomery Financial:
“Sleigh into savings. Barclays are trying to capture headlines in the traditionally quiet week before Christmas, sourcing strongly when there is very little competition. It is also a good indication for lender intentions coming into the new year and the first quarter of next year as they don’t seem to be shying away from reducing rates.
“While not earth-shakingly large reductions, these are still tremors in the right direction, which hopefully the impotent Bank of England will take note of at the next rate-setting committee, in particular the three members who voted for an increase despite the real world economy showing that a rate cut was needed.”
Jack Tutton, director at SJ Mortgages:
“Barclays want to continue the rate war right up to Christmas with their latest reductions. Their headline rate of 4.32% will put them back towards the top of the best buy tables, they will be hoping that it attracts a lot of business in readiness to start 2024 on a strong note. It will be interesting to see how other lenders like NatWest react; they will also want to attract new business given the lack of movement in the purchase market towards the end of this year.”
Elliott Culley, director at Switch Mortgage Finance:
“Good to see further cuts by Barclays in the continuation of rates reducing due to lower swap rates. Barclays is concentrating on their 2-year fixed range which is great to see as there is more demand in this area from clients. This trend should continue into the new year with other lenders reacting to Barclays moves.”
