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Barclays goes sub-4%: "post-base rate cut bonanza from Barclays will help drive confidence among borrowers"

ended 07. August 2024

Barclays has this morning announced that, from tomorrow, Thursday 8 August, it is  changing rates on a selection of products across its Residential Purchase, Remortgage and Reward ranges. Notably, its 5-year fixed at 60% LTV has been reduced to 3.84%. Newspage asked brokers for their views, bottom.

  • 4.04% 5 Year Fixed  £899 product fee, 60% LTV, Min loan £5k, Max loan £2m, will decrease to 3.84%
  • 4.61% 2 Year Fixed  £0 product fee, 60% LTV, Min loan £5k, Max loan £2m, will decrease to 4.43%
  • 4.42% 2 Year Fixed  £899 product fee, 60% LTV, Min loan £5k, Max loan £2m, will decrease to 4.22%.

Key Remortgage product change highlights include:

  • 4.26% 5 Yr Fixed  £999 product fee, 60% LTV, Min loan £5k, Max loan £2m, will decrease to 4.06% 
  • 4.40% 5 Yr Fixed  £999 product fee, 75% LTV, Min loan £5k, Max loan £2m, will decrease to 4.20% 
  • 4.60% 2 Yr Fixed  £999 product fee, 60% LTV, Min loan £5k, Max loan £2m, will decrease to 4.40%.

8 responses from the Newspage community

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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Barclays have made a real statement of intent here. It's game on in the mortgage market now. More lenders going sub-4% is greatly welcomed. The hope now is that these competitive rates will filter up the loan-to-value brackets to help more borrowers.
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Ranald Mitchell
Director at Charwin Mortgages
Barclays' move to cut mortgage rates to sub-4% is a breath of fresh air for borrowers and a welcome boost for the property market. This bold step is sure to ignite interest among prospective buyers who have been sitting on the fence, waiting for better rates. With Barclays setting the pace, other lenders will now feel the heat to follow suit, cranking up the competition. It looks like mortgage product teams across the industry might have to swap their summer holidays for strategy sessions. This is a win for consumers and a lively shake-up for the market.
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Riz Malik
Independent Financial Adviser at R3 Wealth
This post-base rate cut bonanza from Barclays will help drive confidence among borrowers and in the UK housing market. These are some decent cuts but they probably won’t be the last.
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Ben Perks
Managing Director at Orchard Financial Advisers
Barclays have breached the 4% barrier and it's bloody brilliant to see. But now that they are armed with attractive lower rates, will their servicing be up to the task? Either way, the sub-4% competition is hotting up and, as other lenders join the fray, borrowers will start to rejoice.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
This is the news borrowers have been waiting for. More lenders going 4% is symbolic and generates real confidence among borrowers. This is another step in the right direction for rates and suggests we are going to see a lot more activity during the rest of 2024. Let's hope rates get more competitive at higher LTVs.
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Rohit Kohli
Director at The Mortgage Stop
Well done Barclays for being yet another major lender breaking the 4% barrier. This is a shot in the arm to borrowers, particularly those looking to remortgage and who have equity in their property. We still need to see more savings passed onto those with lower deposits, particularly people trying to get onto the property ladder with 5% or 10% deposits.
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Simon Bridgland
Director at Charwin Private Clients
So this is the point in the week when all the big guns of the mortgage lending world grit their teeth and snarl at one another, all vying for top spot with sub-4% deals for the lowest of loan-to-value borrowers. Who will come out on top by the end of the week could be a surprise, as good deals usually creep out amongst other smaller lenders as the week progresses. Will a Samson appear to slay one of the lending goliaths? It wouldn’t surprise me.
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Darryl Dhoffer
Founder at The Mortgage Geezer
Barclays are now on the lower rate train, too. All good if you have big deposits, but what about consumers with smaller deposits? This is a masterclass in lender market dominance. While the masses grapple with affordability, they revel in the appreciation of their assets. Ignoring the consumer with low deposits could stump the market further down the line.