Barclays is reducing mortgage rates across a range of 2-year and 5-year fixed products, with the changes effective from tomorrow (Friday 24th October).
The updates include notable reductions on higher loan-to-value (LTV) products and the launch of a new 5-year fixed rate at 80% LTV with no product fee.
Among the key changes, the 5-year fixed rate at 95% LTV with no product fee will fall from 4.87% to 4.82%, while the 5-year fixed rate at 75% LTV with an £899 product fee will drop from 4.14% to 4.05%.
The 5-year fixed at 60% LTV with an £899 fee will also decrease from 4.11% to 4.01%, and the Green Home 5-year fixed at 60% LTV will fall from 4.01% to 3.91%.
A new 5-year fixed product has been introduced at 80% LTV, available with no product fee, starting at 4.28%.
Across the 2-year range, reductions include the 95% LTV product with no fee, down from 4.92% to 4.87%, and the Premier 2-year fixed at 60% LTV with an £899 fee, reduced from 3.91% to 3.85%.
Nicholas Mendes, mortgage technical manager at John Charcol, said: “Barclays’ latest reductions come as funding costs have eased further, with SONIA swaps down around 6–9 bps across the curve over the past day and roughly 20 bps lower than a month ago.
“Most of the cuts are concentrated at lower LTV tiers, where lenders have more room to adjust margins, but there are also modest trims at 95% LTV, suggesting a little more confidence returning at the higher end.
“With the curve now implying a shallower path for Bank Rate, we could see a few more lenders follow suit in the days ahead.”
