Barclays borrowers have Christmas wrapped amid festive mortgage momentum

Barclays has dropped interest rates on remortgage and existing customer loans by up to 0.11%.

The UK lender's announcement comes as competition hots up in anticipation that the Bank of England will cut the cost of borrowing later this month [next week].

From tomorrow the UK lender, which accounts for around 10% of the UK mortgage market, has dropped the rate of its 3.81% two year fixed rate mortgage with £999 fee to to 3.71%

Existing customers who switch to its EMC reward two year fixed rate will benefit from a 0.11% cut in rates, from 3.92% to 3.81%.*

Justin Moy, managing director at Chelmsford-based EHF Mortgages said the deals were ideal for those looking to remortgage or just for a better deal from Barclays.

"this is great momentum for the mortgage market as a whole. With rates significantly below that 4% threshold, it's the ideal time to get that remortgage underway, before Christmas festivities take over."

Shaun Sturgess, director at Swansea-based Sturgess Mortgage Solutions said that with Nationwide, Santander and NatWest already reducing rates recently, it’s clear the competition between lenders is intensifying and borrowers are starting to feel the benefit.

“For homeowners coming to the end of their fixed deals, these reductions offer a bit of festive relief after a challenging year for affordability. ”

Sturgess pointed out that small decreases on 2- and 5-year products can make a meaningful difference to monthly budgeting, especially with families planning ahead for 2026.

"What’s most encouraging is the pace. Lenders aren’t sitting back waiting for the Bank of England, they’re proactively positioning for a softer rate environment. If this momentum continues into January, the remortgage market could see a strong start to the New Year, giving homeowners more confidence and more meaningful options."

David Stirling, independent financial adviser at Belfast-based Mint Wealth Ltd said the general momentum in the mortgage market has been downward.

"With a BoE rate cut looking quite likely, we could see more competition between the banks running into the New Year. As always, my advice is to get a rate booked early, you can usually switch products if the lender introduces a more competitive product."

Elliott Culley, director at Hayling Island-based Switch Mortgage Finance said it was positive to see lenders making reductions where they can. 

"As we move into 2026, the hope will be for further reductions."

 *Barclays EMC Reward offers exclusive mortgage rates and features to existing Barclays mortgage customers