"Barclays has trimmed rates just enough to turn heads, especially for first-time buyers"

BROKERS and mortgage industry experts have applauded Barclays for cutting selected mortgage rates by up to 0.26% today, and suggested other lenders may follow suit in the race for market share.

The high street lender announced it has reduced rates by up to 0.26% on purchase mortgages in the important 85%-90% loan to value range, for borrowers with smaller deposits or less equity. It has also announced reductions of up to 0.18% on remortgage products.

David Stirling, Director at Mint Mortgages & Protection, said the cuts were big enough to attract attention: “Barclays has trimmed rates just enough to turn heads, especially for first-time buyers stretching into that 85–90% LTV bracket. It's not flashy, but in a market watching every movement, these cuts speak volumes. Borrowers should act fast to secure rates with geopolitical uncertainty brewing.”

Michelle Lawson, Director at Lawson Financial, said: “It's great to see some positivity for borrowers on this dreary Tuesday. Despite the ongoing turmoil in the Middle East, swap rates, which affect fixed rate mortgage pricing, appear relatively stable and have come down a fraction. The question is whether swaps edging down slightly is the start of a trend or a blip. Either way, this is some positive news for borrowers and those remortgaging.”

Harry Goodliffe, Director at HTG Mortgages, agreed: “Barclays making moves like this is a good sign, as it shows lenders are still hungry for business, especially in the higher LTV space where buyers have been hit hardest. These cuts won’t trigger a stampede, but they offer some breathing space for those feeling squeezed. It’s not a rate war, but it is a positive step and momentum counts. Fingers crossed this encourages other lenders to sharpen their pencils, too.”

Daniel Hobbs, CEO at New Leaf Distribution, also hopes other lenders follow suit: “Barclays have delivered some good news for borrowers here. It's been a turbulent week or so in the markets, and moves like this can boost sentiment. The hope is that other lenders follow suit in the days ahead and competition increases.”

Elliott Culley, Director at Switch Mortgage Finance, welcomed the focus on higher loan-to-value products: "Reductions in rates are always welcome and it's great to see Barclays targeting lower deposit products, which are usually last on the pecking order. This will be welcome news to many first-time buyers and shows Barclays have an appetite to lend at higher loan to values."

Meanwhile, Rob Peters, Principal at Simple Fast Mortgage, referred to the cuts as a “win” for consumers: “Barclays cutting rates, particularly in the 85%-90% LTV space, is a small win for buyers with smaller deposits. Whilst it is unlikely to make a huge difference for first-time buyers or those looking to remortgage, these reductions suggest that Barclays is actively competing for market share, and a competitive market is great news for consumers as other lenders could follow suit.”

Sean Horton, Managing Director at Respect Mortgages, said: "Barclays is clearly hungry for higher LTV business, which signals growing confidence in that space. These cuts matter most for first-time buyers and those with smaller deposits who've been priced out recently. The focus on 85%-90% LTV products shows Barclays recognises where the real demand sits. Whilst the reductions aren't earth-shattering, they demonstrate lenders are willing to compete for market share again."