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Barclays cuts mortgage rates in "a manic Monday on the mortgage rate front"

Journalist: Riz Malik

ended 03. February 2025

Following Coventry announcing fixed rate cuts of up to 27bps this morning, Barclays has now announced cuts of its own. Starting tomorrow, Tuesday 4 February, Barclays will launch a number of new products and change rates on a selection of products across its purchase and remortgage ranges. Newspage asked brokers what's causing this rate repricing and whether February is poised to be the month that lenders will lower their rates in earnest. Rate changes below, views bottom.

New products:

  • 5.29% 2 Year Fixed  £899 product fee, 90% LTV, Min loan £5k, Max loan £570k
  • 4.13% Green Home 5 Year Fixed  £899 product fee, 60% LTV, Min loan £5k,  Max loan £2m
  • 4.26% Green Home 5 Year Fixed  £899 product fee, 75% LTV, Min loan £5k,  Max loan £2m
  • 5.24% 2 Year Tracker  £0 product fee, 60% LTV, Min loan £5k, Max loan £2m.

Key Purchase product highlights:

  • 4.43% 2 Year Fixed  £899 product fee, 60% LTV, Min loan £5k, Max loan £2m, will decrease to 4.38%
  • 4.42% 5 Year Fixed  £899 product fee, 75% LTV, Min loan £5k, Max loan £2m, will decrease to 4.36%.

Key Remortgage product highlights:

  • 4.72% 2 Year Fixed  £999 product fee, 75% LTV, Min loan £5k, Max loan £2m, will decrease to 4.64%
  • 5.27% 5 Year Fixed  £999 product fee, 85% LTV, Min loan £5k, Max loan £2m, will decrease to 5.23%.

 

 

7 responses from the Newspage community

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Dariusz Karpowicz
Director at Albion Financial Advice
The mortgage market has sparked into life this Monday morning, with Barclays joining Coventry in a rate-cutting spree that's turning heads and lifting spirits after January's mortgage malaise. Their competitive new lineup, featuring notable reductions across purchase and remortgage products, suggests major lenders are finally ready to sharpen their pencils.
With the Bank of England's rate decision looming on Thursday, these early moves could herald the start of the competitive lending landscape that January promised but failed to deliver. Though whether this marks the beginning of a genuine price war or merely a strategic positioning ahead of market shifts remains to be seen.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
It's been a manic Monday on the mortgage rate front. A handful of lenders have announced cuts and long may it continue as every penny counts for borrowers at present. This is likely lenders pre-empting the expected Bank of England rate cut on Thursday.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Valentine’s Day seems to have arrived early in the mortgage market, with several lenders introducing rate cuts as February begins. With a base rate decision on the horizon, this is promising news for both new borrowers and those looking to remortgage.
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Harps Garcha
Director at Brooklyns Financial
There's been some much-needed positivity in the mortgage market this morning, with Coventry, Barclays and Accord cutting rates, potentially due to the expected base rate reduction on the horizon. A rare win for borrowers after a grim January. Let’s hope this isn’t just a fleeting moment and more lenders follow suit to keep the momentum going.
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Justin Moy
Managing Director at EHF Mortgages
Rate cuts from from Barclays, Accord, Coventry BS and Bank of Ireland reflect a slight improvement in Swap rates over the past few days. Small but positive reductions will give a belated cheer to borrowers, but it's not enough to correct the failures of that October Budget.
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David Stirling
Independent Financial Adviser at Mint Wealth
With the odds of a rate cut on Thursday being slashed this morning and now looking a nailed-on certainty, Barclays have placed their bets quickly by reducing their mortgage rates in the hope of increased market share. The rate war we all anticipated starting in January never came to fruition, but smaller lenders Coventry and Accord both reduced this morning, so competion could potentially heat up. It's unlikely to help borrowers still looking to get in before the stamp duty changes come in, as that finish line is fast approaching.
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Elliott Culley
Director at Switch Mortgage Finance
After a prolonged period of rate increases in the aftermath of an uncertain Budget, the pendulum is now swinging back in favour of consumers with rate decreases likely over the next week or so. Barclays have been particular aggressive with rates this year, being one of the last to increase rates and one of the first to reduce.