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Barclays cuts rates: "Things are looking brighter again for borrowers"

Journalist: Justin Moy, Contributing Editor

ended 09. December 2024

Following a number of other major lenders last week, Barclays are quick out of the blocks this morning, reducing a number of fixed rate deals for both purchases and remortgages. There are a small number of increases, too, but overall brokers welcomed the changes and said rates are moving in the right direction again. They also suggested lenders may be preparing themselves to secure market share ahead of the stamp duty deadline in early 2025.

 

10 responses from the Newspage community

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Andrew MontlakeVerified
CEO at Coreco
It is a case of every little helps at present as borrowers look for any crumbs of comfort that mortgage rates are starting to settle once more. After the post-Budget shock which put paid to a busy end to the year in the mortgage market, a rationalisation of rates over the holiday season sets the market up nicely for a busy return in the New Year. Demand is still there, and with changes in Stamp Duty looming, if mortgage rates once again start with a 3, the January sales will get a welcome boost.
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Katy EatentonVerified
Mortgage & Protection Specialist at Eatenton Finance
These aren't huge reductions from Barclays but they are still heading in the right direction. Hopefully this will spur other lenders to get their skates on and we may see rates back below 4% before the After Eights are cracked open on Christmas Day. The mortgage market has certainly now stabilised after the Budget and things are looking brighter again for borrowers.
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Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages
Rate reductions from Barclays are the perfect start to any week for borrowers, especially with the expectation that more high street lenders will follow. This shows lenders haven’t closed the book on this year's application figures and still want to actively complete for more business.
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Justin MoyVerified
Managing Director at EHF Mortgages
Though not gargantuan, these are important and symbolic rate cuts by Barclays and show their intent. After the Budget blip, rates are starting to move in the right direction again. Lenders look to be getting ready to react to the stamp duty timebomb that will fuel business during the first quarter of 2025, and competitive rates will put them in pole position rather than leave them stuck on the starting grid.
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David StirlingVerified
Independent Financial Adviser at Mint Wealth
Another ray of hope for borrowers, giving those with larger deposits some competitive rates. Further rate tinkering can be expected from lenders during what remains of 2024 as they try to attract some easy business to kickstart January's lending targets. This time of the year is notoriously slow for mortgage applications so Barclays and other lenders are unlikely to be expecting a surge in sales. Cutting rates can quickly bring in new business.
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Simon BridglandVerified
Broker at Charwin Private Clients
Lenders are jostling for the top spot before the year is out. Barclays are kicking off the week with a fixed rate product that's not far off going sub-4%, and now that they are we could perhaps reach that point sooner than we think. This week looks set to have some interesting moves as the big six lenders want to enter the holiday period positioned at the top of your Christmas wish list.
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Ben PerksVerified
Managing Director at Orchard Financial Advisers
Barclays are another of the big boys to make reductions. As lenders make their final push for the year, I think we’ll see more of this. Huzzah.
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Rohit KohliVerified
Director at The Mortgage Stop
Barclays’ rate reductions are a festive boost for borrowers, but I can’t help being cynical. This flurry of cuts feels more like a strategic PR exercise than a genuine move, with lenders aware that business volumes typically drop off over the holiday period. It’s positive that rates are moving in the right direction, but borrowers should question whether these reductions will stick—or if we’ll see rates creep back up after Christmas when lenders no longer feel the need to compete as aggressively. Only time will tell if this is about market positioning or genuine support for borrowers.
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Elliott CulleyVerified
Director at Switch Mortgage Finance
Rate reductions are always a positive sign for borrowers. Although the reductions are for borrowers with bigger deposits, it shows the mortgage market is moving in the right direction. Other lenders could follow as the market slows in the run up to Christmas.
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Iain SwattonVerified
Director at Exemplar Financial Services
Barclays’ decision to lower mortgage rates this morning adds to the positive momentum we saw with rate reductions from other lenders last week. This marks a promising sign that mortgage rates are starting to ease as we approach the end of 2024. Borrowers will welcome this growing competitiveness among lenders, with hopes that 2025 will bring even more affordable borrowing options—a boost for both homeowners and prospective buyers.