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Barclays cuts rates from 30 Aug

ended 29. August 2023

Barclays has just announced “that we are taking advantage of a fall in the cost of market funding by reducing rates on a selection of products across our Residential and Buy to Let new lending and Reward ranges, effective from tomorrow, Wednesday 30th August”. It says the key residential remortgage product change highlights are:

  • 2 year Fixed £999 product fee, 60% LTV, Min loan £5k, Max loan £2m will be reducing from 6.13% to 5.98% 
  • 5 year Fixed £999 product fee, 60% LTV, Min loan £5k, Max loan £2m will be reducing from 5.52% to 5.37% 
  • 5 year Reward Fixed £999 product fee, 75% LTV, Min loan £5k, Max loan £2m will be reducing from 5.54% to 5.39%

Free UK news agency, Newspage, sought the views of brokers, which can be found below.

Publishers: if you use any, or all, of this content for publication, please credit Newspage.

9 responses from the Newspage community

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Peter Stamford
Mortgage Expert at Stamford Home Finance
Any reduction is welcome, even when it's only 0.15% on lower LTV products. Keep them coming Barclays, but maybe something for the 90% loan-to-value crowd next time, too.
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Riz Malik
Independent Financial Adviser at R3 Wealth
What a great return from the Bank holiday weekend. Rishi is cutting the red tape to allow new homes to be built and Barclays are rolling back their rates. It's a shame that while the rate reductions are going live tomorrow, it will be a few years before we see the new houses.
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Mike Staton
Director at Staton Mortgages
Whilst rates are reducing, it isn't quite light at the end of the tunnel just yet, my mortgage is due for renewal in January and as we stand, my £676 per month mortgage will increase to £1237 per month. Telling me that this is a reduction is a lower blow than Oleksandr Usyk received against Dubois, however, my wife has handled it better. Once again the 5 year fixed rate is lower than the 2 year fixed rate, giving me an indication that rates will continue to fall whilst lenders like Barclays continue to Prey on the naivety of unknowing homeowners tieing into a long term fixed rate for potentially very short term gains.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
2-year fixed rates from another of the large high street banks back under 6% is a welcome sign. With reductions to the 5-year fixed showing the confidence in the market going forward from Barclays. Lenders remain behind lending targets, so I would expect to see more price movements as they all jostle for their share of a contracting market pie.
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Elliott Benson
Owner at Sett Mortgages
More good news! I think if the base rate stays the same or increases as expected we will still see rates fall as lenders are wanting to get business through the door before the end of the year
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Ashley Thomas
Director at Magni Finance
It's great to see another lender reduce their rates. I expect more to follow as they battle for market share.
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Graham Cox
Director at Bridging Hub
Wholesale borrowing costs are falling, and Barclays, like other lenders, are reducing mortgage rates in response. And with August a traditionally quiet month in the housing market, the High Street lenders are scrapping it out to maintain transaction volumes and market share.
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Amit Patel
Adviser at Trinity Finance
Any rate cut is welcome. It's positive to see lenders passing on the fall in the cost of funding to borrowers as quickly as they were in increasing their rates when the cost of funding increased.
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Ben Tadd
Director at Lucra Mortgages
Further good news for existing mortgage borrowers whose deals are due to end in the next 6-12 months, as well as prospective first-time and next-time buyers alike, with another round of rate reductions being announced. Swap rate reductions are what we like to see and so long as these keep tumbling, fixed rates should continue to follow suit proportionately, barring any relatively major new negative inflation announcements of course. With Barclays cutting their rates, the domino effect will likely continue, as lenders try to grip onto their market share and begin to plan for building their pipelines to achieve next year's lending targets.