Barclays cuts mortgage rates by up to 0.35%: "It's becoming a great time to buy”

BARCLAYS has cut its mortgage rates by up to 0.35% as brokers say “it's becoming a great time to buy”.

The lender has slashed its deals on new products including its 4.55%, 2 Year Fixed, £899 product fee, 90% Loan To Value (LTV) rate decreasing to 4.20%.

Its 4.20%, 2 Year Fixed, £0 product fee, 85% LTV rate will decrease to 4.02%.

While its 4.37%, 5 Year Fixed, £899 product fee, 90% LTV rate will decrease to 4.17%.

Barclays has also raised some remortgage rates – meaning it is going after first-time buyers, brokers claim.

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, hailed Barclays' move.

He added: “Barclays continues to offer its best rates to those looking to move home, with first-time buyers and homeowners benefiting from market-leading rates. 

"With a 15% deposit now qualifying for a mortgage rate a smidge over 4%, those with relatively small deposits can access a new home without paying over the odds, compared with deals seen over the last 3 years. It's becoming a great time to buy.”

Babek Ismayil, CEO at homebuying platform OneDome, said buyers are being cautious.

He added: “Barclays’ latest round of rate cuts will be a meaningful confidence boost for potential buyers who have spent the past two years on the sidelines. For many households, affordability hasn’t been about house prices alone but about the cost of borrowing, and seeing competitive rates return at 85% and 90% loan-to-value fundamentally changes the maths. 

"This is especially important for first-time buyers, who often have strong incomes but limited deposits. As lenders compete harder, buyers are starting to feel they can plan again rather than constantly second-guessing rate moves. That sense of stability matters. 

"While challenges remain around supply and living costs, cheaper mortgages will unlock pent-up demand and encourage more realistic transactions, particularly among buyers who have delayed moving for fear of overpaying. If this momentum continues into spring, we’re likely to see a noticeable pickup in activity as confidence slowly returns to the housing market.”

Omer Mehmet, Managing Director at Trinity Finance, said these rates mean the market is much more healthy than a year ago.

He continued: “Barclays’ latest rate cuts are a clear signal that competition is heating up again, particularly for first-time buyers. Seeing rates just above 4% at 85% and 90% LTV would have seemed unthinkable a year ago. 

"Combined with generous income multiples, this shows lenders are increasingly confident about demand and affordability, making conditions noticeably more attractive for buyers prepared to move quickly.”

Dariusz Karpowicz, Director at Doncaster-based Albion Financial Advice, urged borrowers to be quick.

He added: “Those 85% and 90% LTV cuts are clearly aimed at first-time buyers who've been priced out for years. The income multiple of six times salary remains one of the strongest offerings out there, especially when paired with rates just above 4% at higher LTVs. 

"If you're moving home or coming off a fixed deal, this could work in your favour. Just don't hang about if you spot a rate you like. Lenders have been pulling their best deals within days lately, and Barclays won't keep these rates live forever if demand surges.”

Aaron Strutt, Product and Communications Director at London-based Trinity Financial, said lenders are slowing down their rate changes recently.

He continued: "Barclays is one of the most generous lenders at the moment, offering cheap rates and six times salary income multiples. The big mortgage lenders have not been making as many rate or criteria changes over the last week although they are starting to come through now. 

“The major banks and building societies had such a busy start to the year to show that they were open for business that the sheer volume of rate and criteria changes were always going to slow down.”

Elliott Culley, Director at Hayling Island-based Switch Mortgage Finance, said Barclays are focusing on first-time buyers.

He added: "With decreases in their higher loan to value ranges of 85% and 90% they will be looking to appeal to more first-time buyers with improvements in this area. 

“Barclays were not well priced in this area so they will hope these changes will increase mortgage borrowing. ”

 

The full list is accessible via: https://i.emlfiles4.com/cmpdoc/0/2/2/4/2/1/files/144468_3-rso.pdf?dm_i=2NUK,1MHJL,530P1O,6M9LA,1,0,0,0

With the emphasis mostly on purchase pricing, Barclays is trying hard to capture those Homeowners and FTBs. Will these cuts make a huge difference, though?

Thoughts on these rate changes welcome