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Barclays cuts up to 0.5% off fixed rate mortgages

Journalist: Justin Moy, Mortgage & Property Reporter

ended 22. January 2024

More High Street rate cuts were announced this morning, this time from Barclays, which shaved up to 0.5% off fixed rates. Home movers and remortgage clients will benefit from the reductions as the market slides ever closer to  sub-4% 2-year mortgages. Newspage asked brokers for their thoughts, below.

 

15 responses from the Newspage community

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Justin Moy
Managing Director at EHF Mortgages
This is a barnstorming challenge from Barclays to the rest of the market, with sizeable cuts across their fixed rates. Importantly, shorter 2-year deals are edging ever closer to the magic sub-4% target. With increased appetite from those moving home and refinancing, Barclays are currently in the middle of the ring swinging a right hook at the others.
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Katy Eatenton
Mortgage & Protection Specialist at Lifetime Wealth Management
This is a great start to the week, especially after the slight increase in swap rates last week and the increase in inflation. Barclays are leading the way for other High Street lenders to follow with their two year rates. Unfortunately, we’re still waiting for a reprice from Nationwide.
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Amit Patel
Adviser at Trinity Finance
While Barclays is blowing the doors off once again, the silence from Nationwide is deafening. We are into week three of 2024 with all other major high street lenders having announced multiple rate cuts in 2024 and Nationwide have announced none. Rate cuts are always welcome and will certainly alleviate the pain felt by households up and down the country over past 18 to 24 months.
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Anil Mistry
Director and Mortgage Broker at RNR Mortgage Solutions
This is fantastic news for borrowers and we're still in January. Kudos to Barclays, another high street champion stepping up. Credit where credit's due - this move is a massive boost for the mortgage market's confidence. The burning question now is how soon will other major players like Nationwide follow suit? The suspense is palpable.
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Elliott Culley
Director at Switch Mortgage Finance
Amazing to see Barclays making further reductions for borrowers. Barclays have taken the bull by the horns and have firmly established themselves as trendsetters in January. The 2-year fixed rate is extremely sought after among borrowers so these product changes are bound to be popular.
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Ken James
Director at Contractor Mortgage Services
Barclays has made another massive statement of intent with these strong rate reductions. I wonder how much further they could reduce before lenders start to hit rock bottom.
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Ben Perks
Managing Director at Orchard Financial Advisers
The excitement and relief felt when a big lender reduces their rates hasn't died off yet. Great news to see this morning. After last week's cuts from almost all major lenders, it's great to see the competition is still going and the race to sub-4% 2-year fixed deals is still on. This is more welcome news for borrowers and I hope the cuts keep on coming.
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Ranald Mitchell
Director at Charwin Mortgages
Big improvments today in Barclays' 2-year pricing, showing they are committed to staying at the front end of the mortgage interest rate race. Inevitably, a response will follow from their immediate competitors, in the unprescendented battle for business unlike anything any of us have ever seen. The gloves are off.
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Rita Kohli
Managing Director at The Mortgage Stop
Another positive start to the week that will take away the Monday blues. With all the mixed signals from the latest economic figures, you could maybe have forgiven lenders from making further cuts but credit to Barclays. Most of the big players, except Nationwide, have now made several reductions in the last few weeks so hopefully we will see this trend continue for a while longer.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
It's great to see another round of reductions from Barclays, which suggests lender are confident in a base rate reduction sooner rather than later. Also of note is the good size of rate reduction on their fee-free products, which often are not discounted as much as those with the arrangement fees. I would expect further rate cuts over the coming days from the other top 6 banks and their challengers.
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Imran Hussain
Director at Harmony Financial Services
What an excellent start to the week. Barclays is looking to stamp its mark on the market early this year and is adding heat to the rate war. It's also great to see the reductions applied to the shorter fixed term products - long may it continue.
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Lee Gathercole
Co-Founder at Rebus Financial Services
The rate war continues. These are fantastic 2-year deals. It's great to see a big high-street lender like Barclays pushing the headline rates. This is only good news for home movers and current homeowners. Long may the fight for the top spots continue.
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Charles Breen
Founder at Montgomery Financial
What a great start to the week. With each day that passes, mortgage lenders are becoming more confident in the stability of the current market. Barclays have made several cuts in quick succession so it shows a real appetite to lend and is fantastic news for borrowers and the wider property market. It wasn't that long ago that we saw lenders only dipping their toe into rate reductions, but now we are seeing some lenders dive head-first and offering larger reductions.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
More shots fired in the rate war. This is impressive stuff from Barclays, coupled with a real improvement seen by brokers in their service levels and processing over the last year or so. 2024 could be a big year for Barclays who clearly want a bigger slice of the market and are putting their money where their mouth is.
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Ashley Thomas
Director at Magni Finance
Rates are going down at a rate of knots and other lenders are now likely to follow. We are firmly in a price war as lenders continue to adjust their rates to gain market share and make up for a weak 2023.