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Barclays Rate Reductions

Journalist: Andrew Montlake, Newspage

ended 29. August 2023

Barclays is the latest lender to reduce rates as SWAP rates have fallen once more.

Key residential remortgage product change highlights

  • 2 year Fixed £999 product fee, 60% LTV, Min loan £5k, Max loan £2m will be reducing from 6.13% to 5.98% 
  • 5 year Fixed £999 product fee, 60% LTV, Min loan £5k, Max loan £2m will be reducing from 5.52% to 5.37% 
  • 5 year Reward Fixed £999 product fee, 75% LTV, Min loan £5k, Max loan £2m will be reducing from 5.54% to 5.39%

Are we now in the midst of a new battle for market share from lenders who are looking to make a good start to next year?

 

6 responses from the Newspage community

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Editor
Mike Staton
Director at Staton Mortgages
Whilst rates are reducing, it isn't quite light at the end of the tunnel just yet, my mortgage is due for renewal in January and as we stand, my £676 per month mortgage will increase to £1237 per month. Telling me that this is a reduction is a lower blow than Oleksandr Usyk received against Dubois, however, my wife has handled it better. Once again the 5 year fixed rate is lower than the 2 year fixed rate, giving me an indication that rates will continue to fall whilst lenders like Barclays continue to Prey on the naivety of unknowing homeowners tieing into a long term fixed rate for potentially very short term gains.
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Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
2-year fixed rates from another of the large high street banks back under 6% is a welcome sign. With reductions to the 5-year fixed showing the confidence in the market going forward from Barclays. Lenders remain behind lending targets, so I would expect to see more price movements as they all jostle for their share of a contracting market pie.
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Platinum
Elliott Culley
Director at Switch Mortgage Finance
Any reduction must be seen as a positive sign, however, we still have a long way to go in the ever-changing world of mortgage rates. The market is still susceptible to outliers to the current forecasts for the economy. This is just Barclays trying to position themselves in the current market to bring in some business.
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Premium
Elliott Benson
Owner at Sett Mortgages
More good news! I think if the base rate stays the same or increases as expected we will still see rates fall as lenders are wanting to get business through the door before the end of the year
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Ashley Thomas
Director at Magni Finance
Great to see another lender reduce their rates, I expect more to follow as they battle for market share.
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Ben Tadd
Director at Lucra Mortgages
Barclays cutting their rates again will only help to fuel competition in the market and the domino effect of rate reductions will likely continue on the same trajectory. With one eye now focusing on next year's lending targets, lenders will be looking to maintain their market share and will have already begun planning to build their pipelines to achieve their lending objectives for 2024. So long as swap rates continue to fall, the likelihood is that fixed rates will follow suit, and this combined with lenders needing to get ahead of the game to make a good start to next year's targets should spell a further period of rate-driven competition in the market, which is only good news for all mortgage borrowers.