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Barclays reduces rates in "a beacon of hope for many borrowers"

ended 16. May 2024

Barclays has just announced a series of material mortgage rate cuts, below. Newspage asked brokers for their views, bottom.

Barclays Mortgage Product & Policy Changes
 
We are pleased to confirm that we are reducing rates on a selection of products in our Residential Purchase, Remortgage and Reward ranges, effective from tomorrow, Friday, 17th May.

Key residential purchase product change highlights

•⁠  ⁠Reduced 5 year Fixed £899 product fee, 60% LTV, Min loan £5k, Max loan £2m will be reducing from 4.47% to 4.34% 
•⁠  ⁠Reduced 5 year Fixed £0 product fee, 75% LTV, Min loan £5k, Max loan £2m will be reducing from 4.90% to 4.58%
•⁠  ⁠Reduced  5 year Fixed £899 product fee, 75% LTV, Min loan £5k, Max loan £2m will be reducing from 4.73% to 4.44%

Key residential remortgage product change highlights

•⁠  ⁠Reduced 5 year Fixed £999 product fee, 60% LTV, Min loan £5k, Max loan £2m will be reducing from 4.77% to 4.32% 
•⁠  ⁠Reduced 5 year Fixed £999 product fee, 75% LTV, Min loan £5k, Max loan £2m will be reducing from 4.84% to 4.45%
•⁠  ⁠Reduced 5 year Great Escape Fixed £0 product fee, 60% LTV, Min loan £5k, Max loan £2m will be reducing from 4.95% to 4.51%

15 responses from the Newspage community

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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Excellent news this morning with rate reductions from both Barclays and HSBC, which will reinvigorate a mortgage market that has been languishing for too long. This could be the spark that starts another mini-rate war as increasingly dovish mood music emerges from Threadneedle Street.
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Harps Garcha
Director at Brooklyns Financial
After this morning's grim mortgage repossession data from the Ministry of Justice, rate reductions like this will be a beacon of hope for many borrowers. With Barclays taking the lead and making substantial reductions, it's a welcome relief to witness some of the financial strain being lifted. This is potentially a pivotal moment where the domino effect of one lender's positive action could inspire more widespread cuts across in the industry, offering a much-needed respite for those grappling with mortgage payments.
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Katy Eatenton
Mortgage & Protection Specialist at Lifetime Wealth Management
Finally, some good news for Britain's beleaguered borrowers. I’m praying other big lenders will follow suit. Barclays' rates aren't competitive currently so this will put them in a more favourable position when speaking with borrowers.
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Michelle Lawson
Director at Lawson Financial
Barclays are the first big gun to fire the rate reduction cannon, swiftly followed by HSBC. These are also good reductions rather than token gestures so we are waiting now for the domino effect as other lenders to follow. This is some much needed positivity during what, for many borrowers, are very anxious times.
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Ben Perks
Managing Director at Orchard Financial Advisers
Finally, one of the Big 6 drops their rates. Barclays are the first to show their hand and it will put pressure on the other major players in the market. Without sounding like Boris, I’m ‘cautiously optimistic’ that others will follow suit. Let's hope we see a flurry of falling rates of the coming fortnight and markets are buoyant going into June. This will leave the Bank of England with little choice but to reduce the Base Rate.
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Dariusz Karpowicz
Director at Albion Financial Advice
There is finally some light at the end of the tunnel. Barclays has just announced reductions in mortgage rates across their residential purchase and remortgage products, which is a refreshing change from the recent trend of rate hikes. This positive news from one of the main lenders could be a response to the encouraging signs from the US economy and might indicate a shift towards more favorable borrowing conditions. Such rate cuts are particularly welcome at a time when the market has been under significant pressure, offering some relief to both new buyers and those looking to remortgage. It's a hopeful sign that lenders are beginning to adjust their offerings in a way that could make homeownership more accessible and affordable. If other lenders follow suit, we could see a more competitive mortgage market, benefiting borrowers across the board.
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Craig Fish
Director at Lodestone Mortgages
Just recently we have seen SWAP rates reducing in line with the positive commentary and data emerging from the Bank of England. Even if they aren't all ready to reduce rates yet, we do at last have a lender that is on the side of borrowers. These reductions from Barclays are good ones, and I now expect more of the major lenders to follow.
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Ranald Mitchell
Director at Charwin Mortgages
Exciting news for anyone looking for a 5-year fixed mortgage. Barclays has just announced some attractive rate reductions, which will certainly appeal to some mortgage seekers. Lenders are now actively competing for market share, and this move from Barclays could be the perfect catalyst to rejuvenate a quiet market.
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Elliott Culley
Director at Switch Mortgage Finance
With SWAPs reacting positively to recent data, it's great to see lenders starting to make changes and reducing rates. Barclays are first out the gate this morning with a range of rate reductions. More will hopefully follow over the coming week.
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Gary Bush
Financial Adviser at MortgageShop.com
And then suddenly Barclays Bank rides in over the hilltop with an amazing set of mortgage rate reductions of up to .45% from tomorrow 17th May 2024. With the markets predicting lower rates could this be the start of something real good with other lenders all rushing in to keep up with Barclays - and then as soon as I put my quill pen down HSBC alerts that they are also dropping all of their rates. Let's hope this is finally the drive downwards that UK households need to assist their monthly budgeting.
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Lee Gathercole
Co-Founder at Rebus Financial Services
This is welcome news, just as the big banks start to creep their interest rates up. Barclays come in with some reductions hopefully we will see more of this to come particurly for lower deposit mortgages.
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Amit Patel
Adviser at Trinity Finance
Great to see Barclays announcing a rate reduction, hopefully other lenders will announce a cut in their rates too.
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James Bull
Mortgage Broker at JB Mortgages
Great to see a major high street lender reduce rates, hopefully this will prompt other lenders to follow suit.
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Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
Don't get too excited, Barclays rates were off the pace, this is them moving back up the pack, not making a break off the front. Whilst rate reductions are always a good news story, it's important to view them in context of the overall market, and in this case, Barclays have been more expensive than their peers recently, so this is them moving back to a competitive place in the market, rather than undercutting everyone else by a massive margin. It will be interesting to see if other lenders feel they must react to this move and lower rates, the SONIA Swap Rates do seem to be on a downward trend, so there could be scope for other lenders to follow suit, if they have the appetite.
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Michael Bennison
Partner at Bennison Brown
Its fantastic to see one of the Big 6 reduce mortgage rates, hopefully its the start of rate reduction season, with HSBC also following. The recent positvie commentary from Andrew Bailey following the Bank of England meeting, along with the news yesterday that inflation in Amercia has fallen will hopefully bring some spring sunshine to the mortgage market