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Barclays cuts mortgage rates again – but why do 5% deposit buyers get the smallest cuts?

ended 10. November 2026

Barclays is cutting rates on 47 mortgage deals from tomorrow (Wednesday), its second round of cuts in less than two weeks, with the biggest reductions going to borrowers taking out 85% to 90% of their home's value.

Its no-fee five-year fix for buyers with a 10% deposit falls from 5.63% to 5.28%, while a five-year remortgage deal at 85% loan-to-value drops from 5.74% to 5.34%. Buyers with a 25% deposit can now fix for five years at 4.98%, down from 5.30%.

However, buyers with a 5% deposit get the smallest cuts in Barclays' purchase range, with both of its 95% loan-to-value deals falling by just 0.05%. The bank has also launched a two-year remortgage deal for homeowners with 10% equity, at 5.39%.

Questions for Newspagers

  1. Why do buyers with a 5% deposit get smaller mortgage rate cuts?
  2. Are mortgage rates going to keep falling?
  3. Should you fix your mortgage for two years or five years?
  4. Is it worth waiting for mortgage rates to fall before buying a home?
  5. How early should you start looking for a remortgage deal?

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6 responses from the Newspage community

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Harry GoodliffeVerified
Director at HTG Mortgages
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A 0.05% cut is a bank saying "not for us". Barclays has taken 0.35% off its 10% deposit five-year fix and basically ignored the 95% deals, because a buyer with a 5% deposit is one small price fall away from owing more than the home is worth, and the bank carries that risk. Government keeps telling first-time buyers that small deposits are the answer, and lenders keep pricing them as the problem. Two rounds of cuts in under a fortnight tell us lenders are now fighting for business, so I expect more to follow before Christmas, which would be very welcome.
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Stephen PerkinsVerified
Mortgage Broker and Managing Director at Yellow Brick Mortgages
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Borrowers with a 5% deposit generally pay more because the lender is taking more risk and has a much smaller equity cushion if house prices fall. That is why 95% mortgages do not always benefit from the same aggressive repricing as lower-LTV deals, even when a lender is cutting across the range.

Barclays making a second round of cuts in less than two weeks is encouraging and shows competition is still strong, but I would not wait to buy purely in the hope rates keep falling. Secure a suitable deal when you are ready, then keep reviewing it before completion. The same applies to remortgaging: start looking several months early rather than trying to guess the bottom of the market.
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Nouran MoustafaVerified
Practice Principal & IFA at Roxton Wealth
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Barclays cutting rates for the second time in less than two weeks is encouraging, particularly for borrowers with 10% to 15% deposits.

The smaller reductions for 5% deposit buyers reflect the greater risk lenders associate with higher loan-to-value mortgages. Smaller deposits generally mean less competitive pricing.

I expect further selective reductions if swap rates and wholesale funding costs remain favourable, but I wouldn't assume a straight downward trend.

As for two versus five years, it's about certainty versus flexibility. A two-year fix offers an earlier opportunity to review rates, while five years protects against future increases.

Waiting to buy purely because you hope mortgage rates will fall is a gamble. The property price could move too.

If you're remortgaging, start reviewing your options around six months before your deal expires. Don't leave your biggest monthly financial commitment until the last minute.
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Tracey DixonVerified
Buy-to-Let Mortgage Specialist & Owner at Pure Mortgage and Protection
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Saving a 5% deposit is hard enough without watching the biggest rate cuts go to buyers with deeper pockets. Lending at 95% carries more risk because there is less equity to cushion a fall in property values. That helps explain higher pricing, although the size of individual cuts also reflects lenders’ appetite for business.

These cuts are welcome, but they don’t guarantee rates will keep falling. Fixed rates respond to funding costs and market expectations, so the next move can go either way.

Choosing between two and five years should start with your plans, not a crystal ball. A two-year fix gives an earlier opportunity to review, but brings refinancing costs and the risk of a higher rate sooner. Five years offers longer payment certainty, although early repayment charges could prove costly if your circumstances change. The right deal needs to fit your life as well as your budget.
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Rohit KohliVerified
Senior Mortgage Adviser - Residential & Commercial at The Mortgage Stop
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Any cut is good news for borrowers, and it’s another reminder that the market doesn’t simply follow the Bank of England base rate. Lenders also price on funding costs and competition.

Is it fair that 5% deposit buyers get the smallest cuts? Probably not, but it’s always been this way. The more you borrow, the more you pay. Higher loan-to-value lending carries the most risk for the lender, and they price for it. Smaller deposit, bigger risk, higher price.

Will rates keep falling? Don’t assume so. This year has shown they won’t fall in a straight line, and with so much political and economic uncertainty globally, that isn’t going away.

If you’re buying or remortgaging, I wouldn’t hesitate. Secure a rate as soon as you can, as long as it’s affordable. You can wait for cheaper rates, but that doesn’t mean you’ll be able to afford the mortgage. If house prices rise while you wait, you’ll need a bigger deposit or a bigger loan. There’s no right time to buy, only the right time for you.
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Justin MoyVerified
Managing Director at EHF Mortgages
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Those with the smallest deposits often receive the smallest rate cuts, given that the product range remains one of the most risky, with the highest Loan to Value, but it is also necessary to trade off larger cuts at other price points, especially more popular deposit points such as 20/25%. It's great to see rates coming back a little, as the conflict has seemed more settled over the last few weeks, and this has also seen the price of oil reduce sharply too. Still, every reason to start as soon as you can on your renewal, as the situation can change very quickly, and both rates and inflation could increase with little notice.