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Barclays Increasing Remortgage Rates, Reducing Purchase Deals

Journalist: Justin Moy, Contributing Editor

ended 30. January 2024

Barclays has just announced a mixture of changes from tomorrow. Remortgage rates are increasing, whilst purchase deals are reducing, as below. 

We asked the Newspage Mortgage Brokers for their thoughts on this, why Barclays have moved differently for different borrowers, and whether other lenders will follow.

5 responses from the Newspage community

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Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
Barclays are the second lender today, behind Skipton to sharpen their purchase rates, whilst also increasing their remortgage and retention rates, which is a change of direction following months of heavy targetting of the remortgage market. It will be interesting to see if this is trend across the marketplace or whether these lenders are just trying to tweak their loan book pipeline split having received a lot of remortgage business recently.
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Editor
Justin Moy
Managing Director at EHF Mortgages
This is an interesting move by Barclays, we know the cost of funds on the SWAP market is forcing lenders to reprice upwards, but their decision to reduce rates for purchases shows that Barclays want to try and keep the momentum going for those buying, which has seen a strong start to the year. Nothing of huge worry at this time, hopefully inflation figures will soon settle the market and we can get back to reducing rates again.
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Editor
Rohit Kohli
Director at The Mortgage Stop
The second lender today to adjust some of their products in opposite directions. This could just be Barclays looking to rebalance some of their lending book with a desire to bring on some more purchase business. All eys are on what Thursday will bring and in partocular the way the MPC votes. We may not see a change in the base rate but we'll certainly get a stronger indication from the Bank of England of its intentions in the coming months.
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Peter Stamford
Mortgage Expert at Stamford Home Finance
Barclays giveth with one hand and taketh away with the other. Rate reductions on some new purchases and rate increases on some remortgages. Seems like some internal shuffling though, not a reaction to market instability.
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Akhil Mair
Director at Our Mortgage Broker
Barclays has set tongues wagging with adjustments, ready to kick in tomorrow. Remortgage rates are on the upswing while purchase deals take a dip, leaving borrowers wondering: why the divergent treatment?

The move reflects Barclays' strategic response to market dynamics, with remortgage rates likely reacting to economic shifts in the UK and across the pond. Meanwhile, the reduced purchase deals signal a bid to entice new homebuyers in a fiercely competitive arena.

The big question now, Will other lenders follow Barclays' lead? Well, another lender already beat Barclays and made a similar announcement today. In a market where trends often ripple across competitors, eyes are peeled for potential domino effects. Borrowers and lenders alike brace for the twists and turns ahead, navigating the ever-changing market of borrowing with cautious optimism. We're betting that more lenders will follow suit.