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Barclays raises fixed rates by 0.2% across range, but improves BTL Options

Journalist: Justin Moy, Contributing Editor

ended 21. January 2025

Barclays has just announced a wholesale 0.2% increase across the bulk of its residential purchase and remortgage fixed deals. At the same time, some loyalty buy-to-let rates have been reduced by 0.45% for existing borrowers. With another high street lender increasing their fixed rates, Newspage asked brokers where next for mortgage pricing. Their views are below.

 

 

4 responses from the Newspage community

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Editor
Justin Moy
Managing Director at EHF Mortgages
Barclays is one of the last lenders to increase rates in light of recent swap rate trends, which aligns them with many of their high-street peers. Without government intervention, it is hard to see any wholesale improvement in the mortgage market. The government needs to intervene to bring the cost of borrowing down before we head into a messy recession in the months to come.
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Editor
David Stirling
Independent Financial Adviser at Mint Wealth
Barclays have held off as long as they could and follow the mainstream lenders in pushing their rates up due to inter-bank swap rate costs. January now feels like a damp squib with the eagerly anticipated rate war nowhere to be seen and a general malaise around the mortgage market starting to materialise.
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Editor
Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
So much for the January rate war. The markets have seen to that. Another major lender hiking rates is not the news borrowers wanted.
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Platinum
Elliott Culley
Director at Switch Mortgage Finance
Swap rates have cooled recently and remained steady. This increase in rates from Barclays should not ring too many alarm bells, as they have been one of the more competitive lenders recently and it's likely they want to take a step back to manage service levels.