Barclays has announced reductions to a wide range of its mortgage rates, affecting both residential purchase and remortgage products.
The changes apply to multiple fixed-rate options across different loan-to-value (LTV) bands and fee structures.
For purchase-only residential mortgages, Barclays is introducing reductions on both 2-year and 5-year fixed-rate products.
Notably, the 4.23% 2-year fixed rate with an £899 product fee at 85% loan-to-value (LTV) will decrease to 4.14%.
Similarly, the 5-year fixed rate at 4.20% with no product fee and a 60% LTV will fall to 4.09%.
The 4.20% 5-year fixed rate with an £899 product fee at 75% LTV will be reduced to 4.12%, while the same term with a zero product fee will now be available at 4.25%, down from 4.30%.
Additional 5-year fixed rate changes include reductions from 4.38% to 4.21% for borrowers at 75% LTV with an £899 fee, and from 4.47% to 4.29% at 85% LTV with no product fee.
At 90% LTV, the Premier 5-year fixed rate with an £899 product fee will drop from 4.17% to 4.33%, while the standard 5-year fixed will fall from 4.42% to 4.38%.
Green Home mortgage products have also seen notable adjustments.
The 2-year fixed rate at 85% LTV with an £899 fee will decrease from 4.13% to 4.04%, and the 75% LTV equivalent will drop from 4.10% to 4.02%.
The 5-year Green Home rates are also falling: the 85% LTV option with an £899 fee will reduce from 4.28% to 4.11%, and the 90% LTV equivalent will fall from 4.32% to 4.28%.
On the remortgage front, Barclays is lowering rates for both standard and Great Escape™ products.
The Great Escape™ 2-year fixed rate with no product fee at 60% LTV will be reduced from 4.33% to 4.15%.
A 3-year fixed rate with a £999 fee at 60% LTV will drop from 3.98% to 3.95%, while the same term at 75% LTV with an £899 fee will fall from 4.13% to 4.10%.
Premier products are also seeing reductions, with the 5-year fixed at 60% LTV and a £999 product fee falling from 4.02% to 3.92%.
A standard 5-year fixed with the same LTV and a £999 fee will go from 4.03% to 3.93%.
The Great Escape™ 5-year fixed with no product fee at 60% LTV will now be offered at 4.09%, down from 4.20%.
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, said: “Monday has kicked off with a flurry of rate reductions among lenders as they battle it out ahead of the summer holidays.
“The direction of travel over the past month has been fairly clear. Swap rates, which heavily influence fixed-rate mortgage pricing, have continued to fall quite noticeably.
“The 5-year swap now sits at 3.632%, down from 3.820% a month ago, while the 2-year swap is at 3.599%, having dropped from 3.816% over the same period.
“The 3-year swap shows a similar story, sitting at 3.567% compared to 3.781% a month ago.”
He added: “While swap rates are moving down and markets remain reasonably confident that the Bank of England will cut the base rate at some stage this year, the next cut in August is looking increasingly likely.
“It’s important to remember, though, that fixed mortgage rates are primarily influenced by swap rates, which are driven by what markets expect to happen with interest rates in the future, rather than by the base rate itself.
“One thing that’s clear is that borrowers shouldn’t become complacent. Sitting on a lender’s Standard Variable Rate or delay committing to a new deal as you approach the end of your current fixed rate in the hope that fixed rates will fall further is risky.
“Most lenders will allow you to secure a rate up to six months in advance, meaning you can lock something in today as a safety net but still switch to a better deal if rates improve before completion.”
