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Barclays cuts rates by up to 0.2% bringing "a touch of warmth to an otherwise frosty lending market"

Journalist: Justin Moy, Contributing Editor

ended 26. November 2024

In a welcome and rare ray of sunshine for borrowers, Barclays has just announced a range of rate cuts of up to 0.2% on their residential mortgage fixed deals. Though we are still some way from the low point of mortgage pricing in 2024, Barclays' move will give borrowers some cheers and may encourage other lenders to follow suit. Newspage asked brokers for their views, below.

 

11 responses from the Newspage community

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Mike Staton
Director at Staton Mortgages
Most people make the assumption that a rate increase by a lender is because they fear the current economic situation. Barclays are proving with this reduction that this is not always the case.

Most lenders tweak their rates regularly according to their own service levels. Barclays have an appetite for lending and want tom finish 2024 on a high, they wont be the only lender that reduces rates before the end of this year. Christmas always seems to be a good time in the industry with rate reductions not uncommon as service levels increase and fewer people looking to buy houses and instead, spend time with their family over the festive period

Also Swap rates appear to be relaxing once again, indicating to me that 2025 could be a great year for homeowners and an even bigger year for the Banks
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Justin Moy
Managing Director at EHF Mortgages
This is a somewhat surprising announcement from Barclays, as the mortgage market showed little scope for any form of rate cuts before Christmas. Whilst these reductions are not going to be enough to tip the economy back on an even keel, they will be encouraging to borrowers and suggest that improvements may be on the horizon.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
The sun is shining in more ways than one. Barclays are the first big lender to announce rate cuts since Swap rates have started to reduce. Hopefully this will encourage other lenders to finally start the Christmas sales and give borrowers something to feel festive about.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
Barclays’ decision to trim their mortgage rates by 0.2% brings a touch of warmth to an otherwise frosty lending market. While any reduction is good news for borrowers, it’s worth noting that this cut follows a flurry of recent increases from other lenders. For those hoping for a true thaw in the mortgage landscape, this may feel more like a snowflake than a snowstorm of progress. Still, a rate cut is a step in the right direction, and it might just be the first glimmer of a brighter season for borrowers.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Barclays have today launched Budget beating mortgage rates. It is great to see cuts on the higher loan-to-value products, too. With market pricing easing we should see other lenders follow in the remaining weeks of 2024. These won’t be major cuts, however, which is unfortunate news for those taking out a mortgage before the end of 2024.
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Daniel Hobbs
Managing Director at New Leaf Distribution
It's been a torrid few weeks for borrowers but these cuts from Barclays may suggest things are starting to stabilise and get back on track. Given their size, other lenders may following in their footsteps.
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Michelle Lawson
Director at Lawson Financial
A glimmer of festive cheer at last as swaps are edging down again resulting in Barclays reducing. Hopefully more cuts will follow so we can end the year on a more positive note and set up 2025 to be a happy New Year.
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Dariusz Karpowicz
Director at Albion Financial Advice
A ray of hope in the mortgage market as Barclays leads the charge with a dash of rate-cutting flair! It's like spotting the first daffodil of spring poking through the financial frost. While we shouldn't get too carried away with dreams of mortgage rates tumbling back to their 2024 lows, this 0.2% reduction from Barclays could indeed spark a trend. True, swap rates did wobble after the Budget, and inflation's been a tad pesky, but with whispers of potential Bank of England rate cuts in the air, this might just be the start of a more competitive lending landscape. Let's keep our fingers crossed, but perhaps not hold our breath quite yet.
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Andrew Montlake
Managing Director at Coreco
This is the news the market wanted to see. Tomorrow marks a month since the Budget and it's been a tough one. This will give borrowers a lift and fingers crossed it is the beginning of rates moving in the right direction again.
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Ben Perks
Managing Director at Orchard Financial Advisers
The tide could be turning, finally. Hopefully this is a sign of things to come. It’s been a tough few weeks watching the rate rises pouring in, hopefully as we near the Christmas break things will improve ready for a big 2025.
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Elliott Culley
Director at Switch Mortgage Finance
With SWAP rates settling and actually falling from the initial spike following the Budget, it's good to see Barclays taking advantage of this and offering some better rates. Hopefully this will encourage others to follow suit making mortgages that little bit more manageable and affordable.