The reductions arrive as lenders continue to adjust pricing in response to recent market conditions. At the same time, mortgage advisers are cautioning that current offers may prove short-lived if global events begin to place fresh pressure on borrowing costs.
Barclays has announced changes affecting new residential, remortgage and reward home loans, with several products becoming cheaper. According to the reports, the most significant reduction applies to the bank’s two-year fixed-rate mortgage at 90% loan-to-value, which falls from 5.45% to 4.79% for new home loans.
For a borrower taking out a £200,000 mortgage on that product, monthly repayments would be £1,182. According to the published figures, this represents a saving of £46 per month, or roughly £1,100 over the two-year fixed term compared with the previous rate.
Barclays Introduces Reductions Across Several Mortgage Products
The latest changes extend beyond a single mortgage product. First-time buyers borrowing at 95% loan-to-value will see the rate on Barclays’ two-year fixed deal reduced from 5.50% to 5.11%. The lender has also lowered its Green Home two-year fixed mortgage at 90% loan-to-value from 5.35% to 4.69%.
The move follows similar action by Nationwide, which reduced rates by up to 0.19 percentage points across selected two, three, five and ten-year fixed-rate mortgages. Tracker mortgage rates were also lowered by as much as 0.12 percentage points.
According to the reports, the latest reductions come as lenders continue adjusting mortgage pricing, with several institutions introducing revised products within days of one another. The changes affect a range of residential lending categories, including shared ownership and buy-to-let products at other lenders mentioned by brokers.
Advisers Urge Borrowers to Secure Deals Amid Market Uncertainty
While advisers welcomed the lower rates, many also warned that borrowers should not assume further reductions will follow. Justin Moy of EHF Mortgages said overseas developments would “inevitably push mortgage rates up yet again, along with other costs such as fuel“, urging borrowers to act quickly because rates “can be here today and gone tomorrow”.
Emma Jones of Whenthebanksaysno.co.uk said rising oil prices could cause lenders to “pause for thought”. Rohit Kohli of The Mortgage Stop said the Barclays pricing had been set before the latest geopolitical developments and warned that borrowers waiting for further reductions were “taking a gamble”.
Darryl Dhoffer of The Mortgage Geezer described those delaying mortgage decisions as “playing a very dangerous game of chicken with global politics“. He said the availability of sub-4.5% mortgage products should be viewed as “a tactical clearance sale” rather than evidence of a lasting change in the market.
Other brokers offered similar advice. According to the reports, David Stirling of Mint Wealth said lenders were “moving fast” after falling swap rates, although he warned that current stability could disappear if inflation increased again. Tracey Dixon of Pure Mortgage and Protection noted that many lenders allow borrowers to reserve a mortgage rate several months before completion while retaining the option to switch to a cheaper deal if rates fall further. She advised borrowers with mortgage deals ending within the next six months to secure a rate now and review it later if lower pricing becomes available.
