Barclays has made significant adjustments to its mortgage offering across both residential purchase and remortgage products, increasing and decreasing selected rates.
In the residential purchase range, key decreases include a 5-year fixed 60% loan-to-value (LTV) product at 4.09% with £899 product fee, as well as a 5-year fixed 75% LTV product at 4.40% with zero fees.
Products across the lender’s remortgage and purchase & remortgage ranges also benefitted from a number of rate cuts.
Barclays also implemented a series of rate increases across its residential range.
Examples include an EMC Reward 2-year fixed 60% LTV product increased to 4.51%, and a EMC Reward 2-year fixed 60% LTV increased to 4.69%.
A number of the lender’s EMC Reward 1-year and 5-year fixed rates have also been increased.
Reaction
Stephen Perkins, managing director at Yellow Brick Mortgages:
“Barclays are the second lender today, behind Skipton to sharpen their purchase rates, whilst also increasing their remortgage and retention rates, which is a change of direction following months of heavy targeting of the remortgage market.
“It will be interesting to see if this is a trend across the marketplace or whether these lenders are just trying to tweak their loan book pipeline split having received a lot of remortgage business recently.”
Justin Moy, managing director at EHF Mortgages:
“This is an interesting move by Barclays, we know the cost of funds on the SWAP market is forcing lenders to reprice upwards, but their decision to reduce rates for purchases shows that Barclays want to try and keep the momentum going for those buying, which has seen a strong start to the year.
“Nothing of huge worry at this time, hopefully, inflation figures will soon settle the market and we can get back to reducing rates again.”
Peter Stamford, mortgage expert at The Mortgage Uni:
“Barclays giveth with one hand and taketh away with the other. Rate reductions on some new purchases and rate increases on some remortgages. Seems like some internal shuffling though, not a reaction to market instability.”
Rohit Kohli, director at The Mortgage Stop:
“The second lender today to adjust some of their products in opposite directions. This could just be Barclays looking to rebalance some of their lending book with a desire to bring on some more purchase business.
“All eyes are on what Thursday will bring and in particular the way the MPC votes. We may not see a change in the base rate but we’ll certainly get a stronger indication from the Bank of England of its intentions in the coming months.”
Akhil Mair, director at Our Mortgage Broker:
“Barclays has set tongues wagging with adjustments, ready to kick in tomorrow. Remortgage rates are on the upswing while purchase deals take a dip, leaving borrowers wondering: why the divergent treatment?
“The move reflects Barclays’ strategic response to market dynamics, with remortgage rates likely reacting to economic shifts in the UK and across the pond. Meanwhile, the reduced purchase deals signal a bid to entice new homebuyers in a fiercely competitive arena.
“The big question now is, Will other lenders follow Barclays’ lead? Well, another lender already beat Barclays and made a similar announcement today. In a market where trends often ripple across competitors, eyes are peeled for potential domino effects.
“Borrowers and lenders alike brace for the twists and turns ahead, navigating the ever-changing market of borrowing with cautious optimism. We’re betting that more lenders will follow suit.”
