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Barclays cuts purchase rates by up to 0.5%

Journalist: Justin Moy, Contributing Editor

ended 09. January 2024

Barclays has just announced further significant purchase mortgage rate cuts, which will go live tomorrow. Borrowers with small or larger deposits will benefit from the cuts, which are impressive given current SWAP rate volatility. Newspage asked brokers for their views, below.

8 responses from the Newspage community

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Editor
Justin Moy
Managing Director at EHF Mortgages
These are significant rate cuts by Barclays, both for those looking to buy with small and larger deposits. These will definitely be attractive to first-time buyers looking to take advantage of improving market conditions. The January mortgage fire sale is firmly underway.
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Gareth Davies
Director at South Coast Mortgage Services
This is a very significant move by Barclays. The best one we've seen in 2024 yet. To see 2-year fixed deals edging this much closer to 4% is not something many would have predicted a few months ago. With their capacity to handle large business volumes, too, this is a serious shift in the market and other lenders are going to lose a lot of business to them unless they also fall in line. Bravo Barclays.
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Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
All cuts are welcome as Barclays battles bravely with the other high street lenders in the rate cut war. We are still waiting on a few but by the end of this week the high street lenders will have all shown their first hand.
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Rohit Kohli
Director at The Mortgage Stop
Rate reductions are always welcome by lenders and Barclays has now fired more shots across the bows of the rest of the high street. Some of these reductions are very positive and it will be interesting to see if these reductions lead to another round of reductions from the rest of the high street.
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Mike Staton
Director at Staton Mortgages
This has always been on the cards with mainstream lenders who are now wanting to join the party. There now seems to be a sense of serenity in the mortgage market and lenders are optimistic about future reductions by the Bank of England. I expect to see rates of 2.8% by the end of 2024. Yes, these will come with lender fees but I am confident this will happen after a reduction in the base rate that I expect to see in May. However, customers should not be led to believe that rates are the be-all and end-all of a mortgage. These rates come with high fees, which may make this an expensive option, especially in the north of England where house prices are relatively low.
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Elliott Culley
Director at Switch Mortgage Finance
Barclays has made a statement today of real intent. They are flying close to the sun with these rates and it may be this is a short-term reduction which clients will have to act fast upon if they want to secure. It will be interesting to see how the other lenders react and whether more will follow suit.
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Rob Gill
Managing Director at Altura Mortgage Finance
These cuts from Barclays are the latest salvo in the ongoing rate war as lenders scramble for new business. As long as the inflation outlook continues to improve, the trend of falling mortgage rates that started last year will continue to gather pace.
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James Bull
Mortgage Broker at JB Mortgages
Very happy to see more and more lenders reducing rates as we head into the new year. This has filtered through into a lot of press coverage as well, hopefully, this will translate to much-improved consumer confidence and a bump in house purchase transactions.